UPSC CSE Prelims 2025

Correct Option

The Petroleum and Natural Gas Regulatory Board (PNGRB) was established under the Petroleum and Natural Gas Regulatory Board Act, 2006. Its primary mandate is to regulate the downstream activities of the petroleum and natural gas sector. These activities encompass refining, processing, storage, transportation, distribution, marketing, and sale of petroleum, petroleum products, and natural gas.

Based on this mandate:

• Refining, storage and distribution of petroleum (Activity 2) falls within PNGRB's regulatory ambit as a downstream activity.
• Marketing and sale of petroleum products (Activity 3) is also regulated by PNGRB, being a downstream activity.

Therefore, only two of the listed activities are regulated by the PNGRB.

Incorrect Options

The PNGRB's regulatory scope explicitly excludes upstream activities, specifically the production of crude oil and natural gas. These upstream functions are typically under the purview of the Ministry of Petroleum & Natural Gas and other dedicated upstream regulatory bodies.

• Production of crude oil (Activity 1) is an upstream activity and is not regulated by PNGRB.
• Production of natural gas (Activity 4) is also an upstream activity and is not regulated by PNGRB.

As only two activities (Refining, storage and distribution of petroleum, and Marketing and sale of petroleum products) are regulated by PNGRB, options (A) Only one, (C) Only three, and (D) All the four are incorrect.