1. Short title, extent, commencement and application.—(1) This Act may be called the Petroleum
and Natural Gas Regulatory Board Act, 2006.
(2) It extends to the whole of India.
(3) It shall come into force on such date1
as the Central Government may, by notification in the
Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference
in any such provision to the commencement of this Act shall be construed as a reference to the coming
into force of that provision.
(4) It applies to refining, processing, storage, transportation, distribution, marketing and sale of
petroleum, petroleum products and natural gas excluding production of crude oil and natural gas.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “affiliate code of conduct” means the code of conduct governing entities engaged in storage,
transmission, distribution, marketing and sale of natural gas under sub-section (1) of section 21;
(b) “Appellate Tribunal” means the Appellate Tribunal referred to in section 30;
(c) “appointed day” means the date on which the Board is established under sub-section (1) of
section 3;
(d) “authorised entity” means an entity—
(A) registered by the Board under section 15—
(i) to market any notified petroleum, petroleum products or natural gas, or
(ii) to establish and operate liquefied natural gas terminals, or
(B) authorised by the Board under section 16—
(i) to lay, build, operate or expand a common carrier or contract carrier, or
(ii) to lay, build, operate or expand a city or local natural gas distribution network;
1. 1st October, 2007 (except s. 16), vide notification No. G.S.R. 637(E) dated 1st October, 2007, see Gazette of India,
Extraordinary, Part II, sec. 3(ii).
15th July, 2010,--Section 16, vide notification No. G.S.R. 596(E), dated 12th July, 2010, see Gazette of India, Extraordinary,
Part II, sec. 3(ii).
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(e) “auto liquefied petroleum gas” means a mixture of certain light hydrocarbons derived from
petroleum, which are gaseous at normal ambient temperature and atmospheric pressure but may be
condensed to the liquid state at normal ambient temperature by the application of moderate pressure,
and which conform to such specifications for use as fuel in vehicles, as the Central Government may,
in consultation with the Bureau of Indian Standards, notify from time to time;
(f) „„Board” means the Petroleum and Natural Gas Regulatory Board established under subsection (1) of section 3;
(g) “Bureau of Indian Standards” means the Bureau of Indian Standards established under section
3 of the Bureau of Indian Standards Act, 1986 (63 of 1986);
(h) “Chairperson” means the Chairperson of the Board appointed under sub-section (1) of
section 4;
(i) “city or local natural gas distribution network” means an inter-connected network of gas
pipelines and the associated equipment used for transporting natural gas from a bulk supply high
pressure transmission main to the medium pressure distribution grid and subsequently to the service
pipes supplying natural gas to domestic, industrial or commercial premises and CNG stations situated
in a specified geographical area.
Explanation.—For the purposes of this clause, the expressions “high pressure” and “medium
pressure” shall mean such pressure as the Central Government may, by notification, specify to be
high pressure or, as the case may be, medium pressure;
(j) “common carrier” means such pipelines for transportation of petroleum, petroleum products
and natural gas by more than one entity as the Board may declare or authorise from time to time on a
non-discriminatory open access basis under sub-section (3) of section 20, but does not include
pipelines laid to supply—
(i) petroleum products or natural gas to a specific consumer; or
(ii) crude oil;
Explanation.—For the purposes of this clause, a contract carrier shall be treated as a common
carrier, if—
(i) such contract carrier has surplus capacity over and above the firm contracts entered
into; or
(ii) the firm contract period has expired.
(k) “CNG station” means filling station where one or more dispensing units are provided for sale
of compressed natural gas;
(l) “compressed natural gas or CNG” means natural gas used as fuel for vehicles, typically
compressed to the pressure ranging from 200 to 250 bars in the gaseous state;
(m) “contract carrier” means such pipelines for transportation of petroleum, petroleum products
and natural gas by more than one entity pursuant to firm contracts for at least one year as may be
declared or authorised by the Board from time to time under sub-section (3) of section 20;
(n) “dealer” means a person, association of persons, firm, company or co-operative society, by
whatsoever name called or referred to, and appointed by an oil company to purchase, receive, store
and sell motor spirit, high speed diesel, superior kerosene oil, auto liquefied petroleum gas or natural
gas;
(o) “distributor” means a person, association of persons, firm, company or co-operative society,
by whatsoever name called or referred to, and appointed by an oil company to purchase, receive, store
and sell to consumers liquefied petroleum gas in cylinders;
(p) “entity” means a person, association of persons, firm, company or co-operative society, by
whatsoever name called or referred to, other than a dealer or distributor, and engaged or intending to
be engaged in refining, processing, storage, transportation, distribution, marketing, import and export
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of petroleum, petroleum products and natural gas including laying of pipelines for transportation of
petroleum, petroleum products and natural gas, or laying, building, operating or expanding city or
local natural gas distribution network or establishing and operating a liquefied natural gas terminal;
(q) “exchange of products” shall mean giving and receiving of a petroleum product in accordance
with an agreement entered into by the concerned entities;
(r) “high speed diesel” means any hydrocarbon oil (excluding mineral colza oil and turpentine
substitute), which conforms to such specifications for use as fuel in compression ignition engines, as
the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to
time;
(s) “kerosene or superior kerosene oil” means a middle distillate mixture of hydrocarbons which
conforms to such specifications, as the Central Government may, in consultation with the Bureau of
Indian Standards, notify from time to time;
(t) “liquefied natural gas terminal” means the facilities and infrastructure required to—
(i) receive liquefied natural gas;
(ii) store liquefied natural gas;
(iii) enable regasification of liquefied natural gas; and
(iv) transport regasified liquefied natural gas till the outside boundaries of the facility;
(u) “liquefied petroleum gas” means a mixture of light hydrocarbons containing propane,
isobutene, normal butane, butylenes, or such other substance which is gaseous at normal ambient
temperature and atmospheric pressure but may be condensed to liquid state at normal ambient
temperature by the application of pressure and conforms to such specifications, as the Central
Government may, in consultation with the Bureau of Indian Standards, notify from time to time;
(v) “local distribution entity” means an entity authorised by the Board under section 20 to lay,
build, operate or expand a city or local natural gas distribution network;
(w) “marketing service obligations” means obligations—
(i) to set up marketing infrastructure and retail outlets in remote areas in respect of notified
petroleum and petroleum products;
(ii) to maintain minimum stock of notified petroleum and petroleum products;
(iii) of a local distribution entity to supply natural gas to consumers; and
(iv) such other obligations as may be specified by regulations;
(x) “maximum retail price” means the maximum price fixed by an entity at which the petroleum,
petroleum products and natural gas may be sold to the retail consumers and includes all taxes, cess
and levies, local or otherwise and freight or commission payable to the dealers;
(y) “member” means a member of the Board appointed under sub-section (1) of section 4 and
includes the Member (Legal) and the Chairperson;
(z) “motor spirit” means any hydrocarbon oil (excluding crude mineral oil) used as fuel in spark
ignition engines which conforms to such specifications, as the Central Government may, in
consultation with the Bureau of Indian Standards, notify from time to time;
(za) “natural gas” means gas obtained from bore-holes and consisting primarily of hydrocarbons
and includes—
(i) gas in liquid state, namely, liquefied natural gas and regasified liquefied natural gas,
(ii) compressed natural gas,
(iii) gas imported through transnational pipelines, including CNG or liquefied natural gas,
(iv) gas recovered from gas hydrates as natural gas,
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(v) methane obtained from coal seams, namely, coal bed methane,
but does not include helium occurring in association with such hydrocarbons;
(zb) “notification” means a notification published in the Official Gazette and the expression
“notified” with its cognate meanings and grammatical variations, shall be construed accordingly;
(zc) “notified petroleum, petroleum products and natural gas” means such petroleum, petroleum
products and natural gas as the Central Government may notify from time to time, after being
satisfied that it is necessary or expedient so to do for maintaining or increasing their supplies or for
securing their equitable distribution or ensuring adequate availability;
(zd) “oil company” means a company registered under the Companies Act, 1956 (1 of 1956) and
includes an association of persons, society or firm, by whatsoever name called or referred to, for
carrying out an activity relating to petroleum, petroleum products and natural gas;
(ze) “petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable
mixture (liquid, viscous or solid) containing any liquid hydrocarbon, including crude oil and liquefied
petroleum gas, and the expression „petroleum product‟ shall mean any product manufactured from
petroleum;
(zf) “pipeline access code” means the code to establish a framework for third party access to
pipelines under sub-clause (i) of clause (e) of section 11;
(zg) “prescribed” means prescribed by rules made by the Central Government under this Act;
(zh) “regulations” means regulations made by the Board under this Act;
(zi) “restrictive trade practice” means a trade practice which has, or may have, the effect of
preventing, distorting or restricting competition in any manner and in particular,—
(i) which tends to obstruct the flow of capital or resources into the stream of production, or
(ii) which tends to bring about manipulation of prices, or conditions of delivery or to affect
the flow of supplies in the market relating to petroleum, petroleum products or natural gas or
services in such manner as to impose on the consumers unjustified costs or restrictions;
(zj) “retail outlet” means filling station where one or more dispensing pumps have been provided
for sale of motor spirit, high speed diesel, auto-liquefied petroleum gas or natural gas and includes
distributorship for liquefied petroleum gas or dealership for superior kerosene oil or CNG stations;
(zk) “retail service obligations” means obligations of dealers and distributors for maintaining
supplies to consumers throughout the specified working hours and of specified quality, quantity and
display of maximum retail price of notified petroleum, petroleum products and natural gas including
CNG and such other obligations, as may be specified by regulations;
(zl) “rules” means rules made by the Central Government under this Act;
(zm) “Secretary” means the Secretary of the Board;
(zn) “transportation rate”, in relation to common carrier or contract carrier or a city or local
natural gas distribution network, means such rate for moving each unit of petroleum, petroleum
products or natural gas as may be fixed by regulations.