Consider the following activities : I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and sale of petroleum products IV. Productions of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

1. A. Only one
2. B. Only two
3. C. Only three
4. D. All the four

Answer: B

Explanation

The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under the PNGRB Act, 2006. Its mandate is to regulate the refining, processing, storage, transportation, distribution, marketing, and sale of petroleum, petroleum products, and natural gas. However, the Act explicitly excludes the ‘production of crude oil and natural gas’ from PNGRB’s regulatory purview. Therefore: I. Production of crude oil: Not regulated by PNGRB. II. Refining, storage and distribution of petroleum: Regulated by PNGRB. III. Marketing and sale of petroleum products: Regulated by PNGRB. IV. Production of natural gas: Not regulated by PNGRB. Thus, only two activities (Refining, storage and distribution of petroleum, and Marketing and sale of petroleum products) from the list are regulated by PNGRB. Understanding the regulatory bodies in key economic sectors is important for UPSC Economy.