October 1, 2026: The Ministry of Petroleum and Natural Gas (MoPNG) on Wednesday floated the draft Petroleum (Amendment) Bill, 2026, for stakeholder consultation, proposing to decriminalise minor offences related to the import, transport, storage, production, refining and blending of petroleum products.
“The objective of the amendments proposed is to rationalize the otherwise generic offence presently under section 23 of Petroleum Act, 1934, which fails to achieve any specific deterrence against the specific offences but has created a framework whereby breaches of licenses become criminal offences,” the ministry said.
The amendment is part of a broader government effort to strengthen the existing legal framework governing offences committed in violation of the Petroleum Act, 1934.
The draft legislation seeks to amend Chapter III of the Act relating to “Penalties and Procedure” by substituting Sections 23 and 25, inserting new Sections 23A, 23B, 23C, 23D and 23E, and amending Section 24.
“The proposed amendments, inter alia, seek to achieve the objectives of de-criminalization of regulatory issues such as breach of terms and conditions of licenses and provides for a mechanism for imposition of civil penalty through an administrative mechanism,” the ministry said.
It added that the proposed amendments would provide adequate deterrence against specific offences relating to various aspects of petroleum operations.
(Source: Business Standard)
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