The Hindu Business Line : Petroleum Regulatory Bill has arm's length clause

A BILL seeking to set up a Petroleum Regulatory Board to oversee and regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum and petroleum products was introduced in the Lok Sabha, today.

The Bill, introduced by the Union Minister of Petroleum and Natural Gas, Mr Ram Naik, made it clear that the proposed Board would operate at an arm's length from the Central Government. It is proposed to give power to the Central Government to broadly lay down policy framework, besides making provision for the Central Government to intervene in matters adversely affecting public interest in certain exigencies.

The Bill also proposes to maintain a data bank of information on activities relating to petroleum and petroleum products to enable planning and development.

The statement of objects and reasons said consequent upon the Government decision for phased dismantling of administered pricing mechanism and full deregulation of petroleum sector from April, marketing and pricing of all petroleum products, except Public Distribution System (PDS) kerosene and LPG (domestic), have been decontrolled effective from April 1.

One of the basic objectives of this Bill was 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, promote competitive markets and 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 might 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.

In order to prevent exploitation of consumers in the deregulated scenario, the Regulatory Board should ensure that each marketing entity displays for the information of customers the maximum retail prices for the notified petroleum and petroleum products and take steps in accordance with regulations to prevent profiteering by the entities.

Provisions have been made in the Bill to ensure redressal of grievances, protection of consumer interest, as also resolution of disputes among entities between an entity and any other person.

As regards the financial implications of the whole matter, the expenditure would be met by the proposed Board from the Petroleum Regulatory Board Fund, constituted under specific clause of the Bill, which would mainly consist of grants made to the Board by the Central Government, after due appropriation by Parliament.

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