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?

(a) Only one
(b) Only two ✓ UPSC's answer
(c) Only three
(d) All the four

Why the answer is (b)

• The Petroleum and Natural Gas Regulatory Board Act, 2006 gives the PNGRB jurisdiction over the downstream and midstream sector: refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas.

• Activities II (refining, storage and distribution) and III (marketing and sale) therefore fall under the Board.

• Upstream activities — exploration and production of crude oil (I) and natural gas (IV) — are expressly excluded from the PNGRB's remit; they are overseen by the Directorate General of Hydrocarbons under the Ministry of Petroleum and Natural Gas.

• The Board also authorises city gas distribution networks and pipelines and sets tariffs.

• Hence two of the four, option (b).

Why the other options are wrong

(a) Only one: Both refining/distribution and marketing/sale are regulated, so the count is two.
(c) Only three: Production of crude oil and natural gas is outside the PNGRB's remit.
(d) All the four: Upstream production is regulated by the DGH, not the PNGRB.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.