The ministry of petroleum and natural gas is planning to amend the Petroleum and Natural Gas Regulatory Board (PNGRB) Act to bring oil companies’ captive or dedicated pipelines under the regulator’s oversight. The proposal aims to improve transparency, enhance safety, and encourage a more competitive fuel transportation market.
Strengthening Oversight and Safety
The government seeks to tighten monitoring and enforce safety compliance by placing captive pipelines under PNGRB’s jurisdiction. This move also allows the conversion of these pipelines into common carriers, enabling third-party access and promoting fair competition across the sector.
Registration Without Fresh Approvals
Under the proposed changes, companies will be required to register their pipelines with PNGRB. However, they will not need to seek new authorisations for their existing infrastructure. The PNGRB Act already grants the regulator the power to declare any dedicated pipeline a common or contract carrier—a provision it intends to enforce more actively.
Push for Greater Market Access
In 2022, PNGRB wrote to oil companies—Indian Oil, BPCL, and HPCL—and highlighted the importance of pipeline regulation for consumer benefit. Experts view fair access to pipeline infrastructure as a critical step toward lowering transportation costs. They believe this will help private players—who currently hold just ten percent of the fuel market—expand their operations.
Potential Impact on Competition
If implemented, the proposal could reshape pricing dynamics and increase competition in India’s oil transportation sector. Projectstoday.com reports that greater third-party access will create a level playing field, supporting both established companies and new entrants.
