Petroleum and Natural Gas Regulatory Board (PNGRB)

Introduction

The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006 (NO. 19 OF 2006) notified via Gazette Notification dated 31st March, 2006.

The Act provide for the establishment of Petroleum and Natural Gas Regulatory Board to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets and for matters connected therewith or incidental thereto.

Further as enshrined in the act, the board has also been mandated 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 so as and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country.

Currently, following incumbents professionally grace the seats of decision making in the Board:

Shri Gajendra Singh, Member
Shri Anjani Kumar Tiwari, Member
Shri Ajit Kumar Pande, Member (Legal)

Vision of PNGRB

"To create a vibrant energy market with rapid and orderly growth through facilitation of flow of investments into the basic infrastructure for efficient transportation and distribution of petroleum, petroleum products and natural gas at minimum cost and high level of protection of consumer interests through fair trade practices and competition amongst the entities so as to ensure the enhanced competitiveness of Indian economy and customer satisfaction."

Functions of Board

The Board shall-

(A) Protect the interest of consumers by fostering fair trade and competition amongst the entities;

(B) Register entities to-

market notified petroleum and petroleum products and, subject to the contractual obligations of the Central Government, natural gas;
establish and operate liquefied natural gas terminals;
establish storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations;

(C) Authorise entities to-

lay, build, operate or expand a common carrier or contract carrier;
lay, build, operate or expand city or local natural gas distribution network;

(D) Declare pipelines as common carrier or contract carrier;

(E) Regulate, by regulations,-

access to common carrier or contract carrier so as to ensure fair trade and competition amongst entities and for that purpose specify pipeline access code;
transportation rates for common carrier or contract carrier;
access to city or local natural gas distribution network so as to ensure fair trade and competition amongst entities as per pipeline access code;

(F) In respect of notified petroleum, petroleum products and natural gas-

ensure adequate availability;
ensure display of information about the maximum retail prices fixed by the entity for consumers at retail outlets;
monitor prices and take corrective measures to prevent restrictive trade practice by the entities;
secure equitable distribution for petroleum and petroleum products;
provide, by regulations, and enforce, retail service obligations for retail outlets and marketing service obligations for entities;
monitor transportation rates and take corrective action to prevent restrictive trade practice by the entities;

(G) Levy fees and other charges as determined by regulations;(H) Maintain a data bank of information on activities relating to petroleum, petroleum products and natural gas;

(I) Lay down, by regulations, the technical standards and specifications including safety standards in activities relating to petroleum, petroleum products and natural gas, including the construction and operation of pipeline and infrastructure projects related to downstream petroleum and natural gas sector;

(J) Perform such other functions as may be entrusted to it by the Central Government to carry out the provisions of this Act.

(K) Determination of Marketing Margin

Powers regarding complaints and resolutions of disputes by the Board

The Board shall have jurisdiction to-

1. Adjudicate upon and decide any dispute or matter arising amongst entities or between an entity and any other person on issues relating to refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas according to the provisions of Chapter V, unless the parties have agreed for arbitration;
2. Receive any complaint from any person and conduct any inquiry and investigation connected with the activities relating to petroleum, petroleum products and natural gas on contravention of-

Retail service obligations;
Marketing service obligations;
Display of retail price at retail outlets;
Terms and conditions subject to which a pipeline has been declared as common carrier or contract carrier or access for other entities was allowed to a city or local natural gas distribution network, or authorisation has been granted to an entity for laying, building, expanding or operating a pipeline as common carrier or contract carrier or authorisation has been granted to an entity for laying, building, expanding or operating a city or local natural gas distribution network;
Any other provision of this Act or the rules or the regulations or orders made there under.

(B) While deciding a complaint under sub-section (1), the Board may pass such orders and issue such directions as it deems fit or refer the matter for investigation according to the provisions of Chapter V.