Question map
Consider the following activities : I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and sale of petroleum products IV. Production of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?
Explanation
PNGRB regulates the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas (excluding production of crude oil and natural gas)[1].
From the four activities listed in the question:
- **Activity I (Production of crude oil)**: NOT regulated - explicitly excluded
- **Activity II (Refining, storage and distribution of petroleum)**: REGULATED
- **Activity III (Marketing and sale of petroleum products)**: REGULATED
- **Activity IV (Production of natural gas)**: NOT regulated - explicitly excluded
Therefore, only **two activities** (II and III) are regulated by PNGRB. The Board's mandate specifically excludes the production of both crude oil and natural gas, focusing instead on the downstream activities of refining, storage, distribution, and marketing.
Sources- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
PROVENANCE & STUDY PATTERN
Full viewThis is a classic 'Scope of Jurisdiction' question. It tests the fundamental distinction between Upstream (extraction) and Downstream (market) activities. If you read the first paragraph of the PNGRB Act in any standard economy book, the exclusion of 'production' is the very first caveat mentioned.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Explicitly lists refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas as regulated by PNGRB.
- Explicitly excludes production of crude oil and production of natural gas from PNGRB's regulatory remit.
- Directly maps to the options: (II) and (III) fall within the regulated list; (I) and (IV) are excluded.
- [THE VERDICT]: Sitter. Direct lift from standard sources like Nitin Singhania (Ch 15) or Ramesh Singh. If you missed this, your reading of regulatory bodies was too superficial.
- [THE CONCEPTUAL TRIGGER]: Infrastructure > Energy Sector > Regulatory Frameworks. Specifically, the separation of powers between the Ministry (Policy/Production) and the Regulator (Market/Tariff).
- [THE HORIZONTAL EXPANSION]: Memorize the 'Who Regulates What' matrix: 1. Upstream (Exploration/Production) -> Directorate General of Hydrocarbons (DGH). 2. Downstream (Refining/Sales) -> PNGRB. 3. Coal -> Coal Controller’s Organization. 4. Electricity -> CERC/SERC. 5. Atomic Energy -> AERB.
- [THE STRATEGIC METACOGNITION]: When studying any Statutory Body, do not just read what it *does*. Aggressively hunt for what it is *explicitly excluded* from doing. The 'Exclusion Clause' is the favorite trap of the examiner.
Defines PNGRB's remit over refining, processing, storage, transportation, distribution, marketing and sale while excluding production activities.
High-yield for governance and economy questions: clarifies what a sectoral regulator controls versus what remains outside its mandate; helps answer questions on regulatory jurisdiction, policy reforms, and disputes about regulatory authority.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
Separates exploration/production (upstream) from refining/distribution/marketing (downstream), showing different institutional responsibilities.
Crucial for questions on energy governance and institutions; links to roles of ministries and companies (e.g., ONGC/OIL) for upstream work versus PNGRB for downstream regulation, enabling candidates to classify policy instruments and regulatory overlaps.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > 4. The Eastern Coast Oil-fields > p. 13
Names the stages — refining, processing, storage, transportation, distribution, marketing and sale — that constitute downstream activities regulated by PNGRB.
Useful for questions on infrastructure, logistics and regulation: knowing each downstream segment helps analyse bottlenecks, regulatory interventions, and policy impacts on supply/price; connects to refinery functions and transport networks.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Oil Refineries of India > p. 15
Since PNGRB is now tested, the next logical question is on the **Directorate General of Hydrocarbons (DGH)**. DGH is the technical arm of the Ministry of Petroleum & Natural Gas that manages Production Sharing Contracts (PSCs) and the Open Acreage Licensing Policy (OALP). Unlike PNGRB, DGH is *not* a statutory body (it was created by a resolution).
Apply the 'Market vs. Mine' logic. Regulatory Boards (like TRAI, CERC, PNGRB) are typically designed to regulate *markets, tariffs, and networks* (where competition exists). 'Production' of natural resources (mining/drilling) is a sovereign activity tied to national assets and geology, usually managed directly by the Government or specialized technical wings (like DGH/IBM). Therefore, eliminate 'Production' (I and IV). This leaves only II and III.
Mains GS3 (Energy Security & Investment Models): The separation of Upstream (Production) and Downstream (Marketing) regulation is crucial for the 'Common Carrier' principle. PNGRB ensures that pipeline owners (like GAIL) don't monopolize transport, allowing private players to compete in marketing. This links directly to 'Ease of Doing Business' in the energy sector.