Draft Petroleum Bill 2026 explained: what changes
The government wants to rewrite how petroleum rule-breakers are punished. Here is what the draft Petroleum (Amendment) Bill, 2026 means.
Released on September 30, the draft decriminalises breaches of licence terms under the Petroleum Act, 1934. Minor lapses would draw civil fines instead of criminal prosecution.
An adjudicating officer could impose up to Rs 2.5 crore for a first breach and up to Rs 5 crore for repeat breaches. The officer could also order corrective action or recommend suspending the licence.
Serious offences stay criminal. Running a licensable activity without a licence could mean up to three years in jail or a Rs 25 crore fine.
Fraudulently obtaining a licence could bring up to five years in jail. Damage to facilities or endangering safety could draw up to five years and Rs 15 crore for a first offence.
Damage to critical infrastructure like refineries and pipelines could mean up to 10 years in prison. Public comments are open until October 30.
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