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Q60 (IAS/2025) Economy › Industry, Infrastructure & Investment › Energy sector infrastructure Answer Verified

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?

Result
Your answer: —  ·  Correct: B
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. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
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Q. Consider the following activities : I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and …
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10
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This 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.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
List which of the following activities in India are regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB): (I) production of crude oil, (II) refining, storage and distribution of petroleum, (III) marketing and sale of petroleum products, (IV) production of natural gas; list the regulated activities and return the count.
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
Presence: 5/5
“PNGRB is a statutory regulatory body of GOI set up in 2006, constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006. 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) so as to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country.”
Why this source?
  • 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.
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