Government drafts overhaul of Petroleum Act, opens public comment period

The Centre announced a draft Petroleum (Amendment) Bill, 2026 and opened it for stakeholder feedback. Proposed changes by the Ministry of Petroleum and Natural Gas would overhaul Section 23 of the existing Act, creating a clear split between administrative violations and criminal offences. Breaches of licence terms would no longer be criminal, with an authorised adjudicating officer empowered to levy civil penalties of up to ₹2.5 crore for a first offence and ₹5 crore for subsequent breaches, as well as recommend suspension, revocation or curtailment of licences.

The amendment also introduces distinct criminal offences and steeper penalties for unauthorised petroleum activities, fraudulent licensing, damage to facilities, pilferage and actions endangering safety. The draft is now subject to a public consultation process to gather input from industry and civil society. Officials say the reform aims to replace the “generic offence” language of one outlet law with a more targeted regulatory framework.