Q. Consider the following activities : - Production of crude oil
- Refining, storage and distribution of petroleum
- Marketing and sale of petroleum products
- Production of natural gas
How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country? (UPSC Prelims 2025)
Answer:
Only two
Notes: The correct answer is
[B] Only two. The Petroleum and Natural Gas Regulatory Board (PNGRB) was established under the PNGRB Act, 2006, with a specific mandate that excludes the "upstream" sector of the industry.
- Refining, storage, and distribution (Correct): The PNGRB is tasked with regulating the refining, processing, storage, transportation, and distribution of petroleum, petroleum products, and natural gas. It ensures competitive markets and protects the interests of consumers and entities engaged in these "midstream" activities.
- Marketing and sale (Correct): The Board regulates the marketing and sale of petroleum products and natural gas. This includes overseeing the network of pipelines and city gas distribution (CGD) networks to ensure uninterrupted and widespread supply.
- Production of crude oil and natural gas (Incorrect): These are "upstream" activities. The exploration and production (E&P) of crude oil and natural gas are regulated by the Directorate General of Hydrocarbons (DGH) under the Ministry of Petroleum and Natural Gas. The PNGRB Act specifically excludes the exploration and production aspects from the Board's jurisdiction.
In essence, the PNGRB acts as a watchdog for the "midstream" and "downstream" sectors, while the DGH handles the "upstream" extraction phase. This division of labor ensures that the technical complexities of drilling are handled by one body, while market competition and infrastructure are managed by another.