PETROLEUM REGULATORY BOARD BILL INTRODUCED IN LOK SABHA

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Shri Ram Naik, Minister of Petroleum & Natural Gas, has introduced a Bill, in the Lok Sabha today, seeking to provide for the establishment of the Petroleum Regulatory Board (PRB) to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum and petroleum products excluding production of crude oil and natural gas. The Bill seeks to protect the interests of consumers and entities engaged in specified activities relating to petroleum and petroleum products, ensure uninterrupted and adequate supply of petroleum and petroleum products all over the country, promote competitive markets and related matters. While introducing the Bill Shri Naik told the House that consequent upon the Government decision for phased dismantling of Administered Pricing Mechanism and full deregulation of petroleum sector from April 2002, marketing and pricing of all petroleum products except Public Distribution System (PDS) Kerosene and LPG (Domestic) have been decontrolled w.e.f. 1st April , 2002. One of the basic objectives of the Bill is to provide for a regulatory mechanism which would facilitate uninterrupted and adequate supply of petroleum and petroleum products in all parts of the country including remote areas at fair price. The proposed Board would promote competitive markets and ensure access to monopolistic infrastructure in the nature of common carrier on non-discriminatory basis by all entities. With respect to such petroleum and petroleum products as may be notified by the Government from time to time, the Bill also entails provision of retail service obligations for retail outlets and marketing service obligations for entities. To prevent exploitation of consumers in the deregulated scenario, the Regulatory Board shall ensure that each marketing entity displays for the information of the customers the maximum retail prices for the notified petroleum and petroleum products. The proposed Board will take steps to prevent profiteering by the entities in accordance with regulations. Provisions have been made in the Bill to ensure redressal of grievances and protection of consumer interest as also resolution of disputes amongst entities or between an entity and any other person. The above objectives are intended to be achieved by:- a. setting up of a Petroleum Regulatory Board to oversee and regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum and petroleum products. The Board would operate at an arm's length from the Central Government; b. giving power to the Central Government to broadly lay down the policy framework; c. making provision for the Central Government to intervene in matters adversely affecting public interest in certain exigencies; d. maintaining a data bank of information on activities relating to petroleum and petroleum products to enable planning and development thereof. It is proposed that the Board will consist of a Chairperson and other members not exceeding four, who will be appointed by the Central Government from amongst persons of eminence in the fields of petroleum industry, management, finance, law, administration, consumer affairs, etc. The Chairperson and other Members will hold the office for a term of five years or until the age of 65 years whichever is earlier. The headquarters will be at New Delhi and the Board may have regional offices at such places as may be necessary having regard to public interest and magnitude of work.