Centre unveils petroleum law reforms, seeks industry feedback

The central government has initiated a public consultation process on proposed amendments to the Petroleum Act, signalling a shift in its regulatory approach to the oil and gas sector. The draft legislation aims to balance enforcement with industry practicality by decriminalising certain licence breaches, a move intended to reduce unwarranted criminal prosecution of technical violations.

Under the proposed changes, the government would introduce specific criminal offences targeting genuinely harmful activities, coupled with significantly enhanced penalties. This stratified approach seeks to distinguish between inadvertent regulatory lapses and deliberate unlawful operations, particularly those conducted without proper authorisation.

The draft Bill marks a departure from the existing framework, which critics have argued casts too wide a net in criminalising violations. By reserving criminal action for substantive breaches, the amendments aim to provide greater regulatory clarity while maintaining strict oversight of unauthorised petroleum activities.

Industry stakeholders, including oil and gas companies, trade associations, and legal experts, have been invited to submit feedback on the proposed changes. The government's consultation period will help refine the legislation before it proceeds through parliament, ensuring the revised framework adequately addresses enforcement challenges while supporting legitimate business operations in India's energy sector.