The Petroleum Act, 1934

1Title, Scope, and Start Date

1. This law is called the Petroleum Act, 1934.
2. It applies to the entire country of India.
3. The law will start on a date that the Central Government decides and announces in the Official Gazette.

2Definitions

In this Act, unless there is anything repugnant in the subject or context:

3Import, Transport, and Storage of Petroleum

1. No person shall import, transport, or store any petroleum except in accordance with the rules made under Section 4.
2. No person shall import Petroleum Class A, or transport or store any petroleum, unless they hold a licence granted in accordance with the rules made under Section 4.

4Rules for the Import, Transport, and Storage of Petroleum

The Central Government may make rules for the following matters:

1. Prescribing the places where petroleum may be imported and prohibiting import elsewhere.
2. Regulating the import of petroleum.
3. Prescribing time limits for licence applications for importing Petroleum Class A, and the disposal or confiscation of petroleum where licences are refused or not applied for.
4. Regulating the transport of petroleum.
5. Prescribing the nature, material, and condition of containers and pipelines used for transporting petroleum.
6. Prescribing the places and conditions under which petroleum may be stored.
7. Prescribing the type, location, and condition of containers used for storing petroleum.
8. Prescribing the form, conditions, authorities, procedures, and fees for licences related to importing, transporting, or storing petroleum.
9. Specifying whether the consignor, consignee, or carrier must obtain a licence in particular transport cases.
10. Providing for combined licences for importing, transporting, and storing petroleum, or for any two of these activities.
11. Deciding the amount of any poisonous substance that can be mixed with petroleum, and banning the import, transport, or storage of petroleum if the amount of a specified poisonous substance is too high.
12. Making any other rules needed to properly control the import, transport, and storage of petroleum, including charging fees for services related to these activities.

5Production, Refining, and Blending of Petroleum

1. No one is allowed to produce, refine, or blend petroleum unless they follow the rules made under sub-section (2).
2. The Central Government can make rules about:
   1. Setting the conditions under which petroleum can be produced, refined, or blended.
   2. Regulating how petroleum is removed from places where it is produced, refined, or blended. The government can also prevent the storage or removal of any petroleum (except Petroleum Class A) unless it has passed the required tests.

6Warning on Receptacles Containing Petroleum Class A

All containers holding Petroleum Class A must have a clear warning label stamped, embossed, painted, or printed on the container itself (or if not possible, placed nearby), including the words "Petrol" or "Motor Spirit", or another clear label to indicate that the petroleum is dangerous.

However, this rule does not apply to:

1. Small containers (less than 10 litres) of Petroleum Class A that are securely sealed, made of glass, stoneware, or metal, and not meant for sale.
2. A fuel tank in a motor vehicle or attached to an engine, if the petroleum is used to power the vehicle or engine.
3. A pipeline used to transport petroleum.
4. Any tank that is completely underground.
5. Any other type of container or receptacle that the Central Government may decide to exempt through an official notice in the Gazette.

7No Licence Needed for Transport or Storage of Limited Quantities of Petroleum Class B or Class C

Even though the law generally requires a licence, you do not need a licence if:

1. For Petroleum Class B:
   • The total amount you have at one place is 2,500 litres or less.
   • None of it is stored in a container that holds more than 1,000 litres.
2. For Petroleum Class C:
   • The total amount you have at one place is 45,000 litres or less.
   • The petroleum is transported or stored according to the rules in Section 4.

8No Licence Needed for Small Quantities of Petroleum Class A

1. A person does not need a licence to import, transport, or store Petroleum Class A if it is not intended for sale, and the total amount does not exceed 30 litres.
2. Any Petroleum Class A kept without a licence must be stored in securely sealed containers made of glass, stoneware, or metal:
   • For glass or stoneware containers: capacity must not be more than 1 litre.
   • For metal containers: capacity must not be more than 25 litres.

9Exemptions for Motor Conveyances and Stationary Engines

1. The owner of a motor vehicle or a stationary internal combustion engine does not need a licence for:
   1. The import, transport, or storage of petroleum in the fuel tank of the vehicle or engine.
   2. Transporting or storing Petroleum Class A not exceeding 100 litres in addition to the amount in the fuel tank, used to power the vehicle or engine.

2. If Petroleum Class A is stored or transported without a licence under clause (b):
   • It must be stored safely as described in Section 8(2).
   • If the amount exceeds 30 litres, it must be stored in a separate, isolated place not connected to any area where people live, work, or gather.

10No Licence Needed for Railways Acting as Carrier

A railway administration (as defined in the Indian Railways Act, 1890) does not need a licence to import or transport petroleum when acting as a carrier (i.e., transporting petroleum for others).

11Exemption for Heavy Oils

The rules in this chapter do not apply to any petroleum that has a flash-point of 93°C or higher.

12General Power of Exemption

The Central Government can, by official notification, exempt any specific petroleum from all or some of the rules in this chapter.

13Inspection of Places

1. The Central Government can appoint an officer (either by name or position) to inspect places where petroleum is being imported, stored, produced, refined, blended, or transported. The officer will check if containers, equipment, and procedures follow the rules in this chapter.
2. The Central Government can also make rules to decide how these inspections should be carried out.

14Inspection and Sampling of Petroleum

1. The Central Government may authorize an officer to enter any premises where petroleum is being imported, transported, stored, produced, refined, or blended, and to inspect and take samples for testing purposes.
2. The Central Government may establish rules to regulate:
   1. The process for taking samples of petroleum for testing.
   2. The circumstances under which payment will be made for the value of the samples taken.
   3. The general procedures for officers exercising the powers outlined in this section.

15Standard Test Apparatus

1. A standard apparatus for testing the flashpoint of petroleum will be kept with an officer appointed by the Central Government, as announced in the Official Gazette.
2. The apparatus will be labelled "Standard Test Apparatus", checked and updated as needed, per rules under Section 21.
3. The Standard Test Apparatus will be available for inspection by anyone upon payment of the required fee, at reasonable times.

16Certification of Other Test Apparatus

1. Upon payment of the required fee, the officer appointed under Section 15 will compare any apparatus used to test flash-point with the Standard Test Apparatus.
2. If the apparatus agrees with the Standard Test Apparatus within allowed limits, the officer will:
   • Engrave a special number and the date of comparison on the apparatus.
   • Issue a certificate confirming the apparatus meets the required standards, including any corrections needed.
3. The certificate issued under this section will be valid for a period decided by the rules.
4. The certificate will be considered proof that the apparatus meets the required standards, unless proven otherwise, for as long as the certificate is valid.
5. The officer will maintain a register of all certificates issued under this section.

17Testing Officers

The Central Government can appoint any officer (by name or position) to test petroleum samples taken under this Act or submitted by any person, and to issue certificates based on the test results.

18Manner of Test

All tests on petroleum must be done using a test apparatus that has a valid certificate under Section 16. The officer must consider any corrections specified in the certificate and follow the rules set out in Section 21.

19Certificate of Testing

1. After testing petroleum samples, the testing officer will issue a certificate stating whether the petroleum is Petroleum Class A, Class B, or Class C. For Class B or Class C, the certificate will also state the flash-point.
2. The officer must provide a certified copy to the person who requested it, for a fee. This copy can be used as evidence in court.
3. A certificate issued under this section is admissible as evidence in any legal proceedings and is considered conclusive proof of the class (and flash-point for Class B or Class C), unless proven otherwise.

20Right to Require Re-Test

1. If the owner of the petroleum (or their agent) is not satisfied with the results of a test, they can ask for a re-test within seven days of receiving the test result.
2. The owner or their agent must apply to the officer appointed under Section 14 and pay the required fee. Fresh samples will be taken and tested in the presence of the owner, their agent, or a person they choose.
3. If the re-test shows the original test was wrong, the testing officer will:
   • Cancel the original certificate issued under Section 19.
   • Issue a new certificate with the correct results.
   • Provide a free certified copy of the new certificate.

21Power to Make Rules Regarding Tests

The Central Government can create rules about the following:

1. Setting standards for how the Standard Test Apparatus should be specified, checked, corrected, and replaced.
2. Deciding the fee for inspecting the Standard Test Apparatus.
3. Regulating the process for comparing other test equipment with the Standard Test Apparatus.
4. Setting the format for certificates issued for compared test equipment, and determining how long these certificates are valid.
5. Deciding how the register of certificates for test apparatus should be maintained.
6. Deciding the fees for comparing other test equipment with the Standard Test Apparatus.
7. Regulating how testing officers should carry out petroleum tests, including how to handle multiple samples from the same lot and acceptable temperature variations.
8. Setting the format for certificates of petroleum tests and deciding the fees for issuing them.
9. If test results suggest petroleum quality may not be consistent, requiring division into sub-lots and averaging results.
10. Setting fees for re-tests under Section 20 and deciding when these fees should be refunded.
11. Setting rules for how officers should perform all duties related to testing petroleum.

22Special Rules for Testing Viscous or Solid Forms of Petroleum

The Central Government can create special rules for testing forms of petroleum that are:

• Viscous (thick or sticky),
• Solid, or
• Contain sediment or thickening ingredients.

These special rules can change or add to the existing rules under this Chapter or under Section 21.

23General Penalty for Offences under this Act

1. Anyone who commits any of the following offences can be punished:
   1. Breaks any rule in Chapter I or any related rules.
   2. Breaks any rule made under Section 4 or Section 5.
   3. A licence holder or person in charge who breaks or allows others to break any licence condition.
   4. A person in charge who refuses to show equipment during an inspection, or fails to assist the inspector.
   5. Anyone who refuses to show petroleum, give assistance, or let the inspector take samples during an inspection.
   6. Anyone required by Section 27 to report an accident who fails to do so.

24Confiscation of Petroleum and Receptacles

1. If someone is convicted of an offence under Section 23 (clauses (a), (b), or (c)), the Magistrate can order:
   1. The petroleum involved in the offence be confiscated, or
   2. If the person was caught handling more petroleum than allowed, the entire amount may be confiscated.
   Along with the petroleum, the containers (receptacles) used to store it can also be taken away.
2. The High Court can also use this power to confiscate petroleum and receptacles if it is reviewing or hearing an appeal about the case.

25Jurisdiction

Offences under this Act will be tried in different courts based on the location:

• In Presidency towns: by a Presidency Magistrate.
• Outside Presidency towns: by a Magistrate of the first class, or a Magistrate of the second class specially authorized by the Central Government.

26Power of Entry and Search

1. The Central Government can authorize an officer to enter and search any place if the officer believes that petroleum is being handled illegally. The officer can seize, detain, or remove any petroleum if an offence has been committed.
2. The rules for conducting searches, as stated in the Code of Criminal Procedure, 1973, will apply to searches done by officers authorized under this section.
3. The Central Government can make rules to guide authorized officers on how to conduct searches, consistent with the Code of Criminal Procedure.

27Notice of Accidents with Petroleum

1. If an accident involving petroleum (such as an explosion or fire caused by the ignition of petroleum or its vapours) results in loss of human life, serious injury to people or property, the person in charge of the place (or person in charge of the vehicle or vessel carrying petroleum) must immediately report the accident.
2. The report should be made within a prescribed time to:
   • The nearest Magistrate,
   • The officer in charge of the nearest police station,
   • The Chief Controller of Explosives.

28Inquiries into Serious Accidents with Petroleum

1. If a person is killed in an accident caused by the ignition of petroleum or petroleum vapour, the Magistrate must hold an inquiry under Section 176 of the Code of Criminal Procedure, 1973, unless the Coroners Act, 1871 applies.
2. If an accident results in serious injury to people or property (but no one is killed), the Magistrate may still hold an inquiry to investigate the cause.
3. A Commissioner of Police is also considered a Magistrate for the purpose of holding such an inquiry.
4. The results of these inquiries must be submitted to the Central Government, Chief Controller of Explosives, and the State Government as soon as possible.

29Provisions Relating to Rules

1. When making rules under this Act, the Central Government can:
   1. Include provisions to protect the public from risks related to the import, transport, storage, production, refining, or blending of petroleum.
   2. Make special rules for certain states or places based on their unique circumstances.
2. Any rule made under this Act must first be published publicly before it can be finalized.
3. All rules made under this Act must be published in the Official Gazette.
4. After being made, the rules must be presented to both Houses of Parliament while they are in session for 30 days. If both Houses agree to change or cancel the rule within that time, the rule will only take effect in the changed form, or not at all. However, any actions taken under the rule before this change will still be valid.

30Power to Apply Act to Other Substances

31Power to Limit Powers of Local Authorities over Petroleum

If any law gives powers to local authorities regarding the transport or storage of petroleum, the Central Government can, through a notification in the Official Gazette:

1. Limit how the law applies in those areas, or
2. Restrict how local authorities can use these powers in ways the Government thinks are necessary.

32Repeals