Consider the following activities :
I. Production of crude oil
II. Refining, storage and distribution of petroleum
III. Marketing and sale of petroleum products
IV. Production of natural gas
How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?
(a) Only one
(b) Only two
(c) Only three
(d) All the four
The correct answer is (b) Only two.
Explanation: PNGRB’s Mandate
The answer is derived from the explicit text of the PNGRB Act, 2006. The Act was established to regulate:
…the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas…
Based on this official text, let’s analyze each listed activity:
| Activity Listed | In PNGRB’s Mandate? | Reason |
| I. Production of crude oil | No | Explicitly excluded as an “upstream” activity. |
| II. Refining, storage and distribution of petroleum | Yes | All three components (Refining, Storage, Distribution) are explicitly included in the Act’s regulatory scope. |
| III. Marketing and sale of petroleum products | Yes | Both components (Marketing and Sale) are explicitly included in the Act’s regulatory scope. |
| IV. Production of natural gas | No | Explicitly excluded as an “upstream” activity. |
Since activities II and III are both explicitly covered by the Act, the number of regulated activities from the list is two.
Learn More: PNGRB’s Role in the Value Chain
The role of the PNGRB is to regulate the midstream (transportation/pipelines) and downstream (refining, distribution, marketing, sale) segments of the oil and gas industry.
- Upstream Exclusions: The Act strictly excludesproduction of crude oil and natural gas (I and IV). This activity falls under the purview of the Ministry of Petroleum and Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH).
- Core Regulation: The PNGRB’s primary functions include:
- Authorizing and setting tariffs for pipelines (transportation and distribution).
- Developing and regulating City Gas Distribution (CGD) networks.
- Registering entities for marketing and sale (III) and ensuring fair trade practices.
- Setting technical and safety standards for activities like refining and storage (II).
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