The Petroleum Act, 1934

1. Title, 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.

2. Definitions

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

  1. “Petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture (liquid, viscous, or solid) containing any liquid hydrocarbon.
  2. “Petroleum Class A” means petroleum having a flash-point below twenty-three degrees Centigrade.
  3. “Petroleum Class B” means petroleum having a flash-point of twenty-three degrees Centigrade and above but below sixty-five degrees Centigrade.
  4. “Petroleum Class C” means petroleum having a flash-point of sixty-five degrees Centigrade and above but below ninety-three degrees Centigrade.
  5. “Flash-point” of any petroleum means the lowest temperature at which it yields a vapour that will give a momentary flash when ignited, determined in accordance with the provisions of Chapter II and the rules made thereunder.
  6. “To transport petroleum” means to move petroleum from one place to another in India, and includes moving it across a territory which is not part of India.
  7. “To import petroleum” means to bring it into India by land, sea, or air, otherwise than during the course of transport.
  8. “To store petroleum” means to keep it in any one place, but does not include any detention occurring during the ordinary course of transport.
  9. “Motor conveyance” means any vehicle, vessel, or aircraft used for transporting persons, animals, or goods by land, water, or air, in which petroleum is used to generate motive power.
  10. “Prescribed” means prescribed by rules made under this Act.

3. Import, 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.

4. Rules 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 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.
  1. 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.
  2. Making any other rules needed to properly control the import, transport, and storage of petroleum, including charging fees for services related to these activities.

5. Production, 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.

6. Warning on Receptacles Containing Petroleum Class A

All containers holding Petroleum Class A must have a clear warning label. The label should be stamped, embossed, painted, or printed on the container itself, or if that's not possible, placed nearby. The warning should include the words “Petrol” or “Motor Spirit”, or another clear label to show that the petroleum is dangerous.

However, this rule does not apply to the following:

  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.

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

Even though the law generally requires a licence for transporting or storing petroleum, 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.

8. No 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 they have 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, the capacity must not be more than 1 litre.
    • For metal containers, the capacity must not be more than 25 litres.

9. Exemptions for Motor Conveyances and Stationary Engines

  1. The owner of a motor vehicle (car, truck, etc.) or a stationary internal combustion engine (like a generator) does not need a licence for the following:
    1. For the import, transport, or storage of petroleum in the fuel tank of the vehicle or engine.
    2. For transporting or storing Petroleum Class A, as long as it doesn't exceed 100 litres in addition to the amount already in the fuel tank of the vehicle or engine. This petroleum must be used to power the vehicle or engine.

Note: The total amount of Petroleum Class A stored without a licence under clause (b) cannot exceed 100 litres, even if the owner has more than one vehicle or engine.

  1. 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 that is not connected to any area where people live, work, or gather.

10. No 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 it is acting as a carrier (i.e., transporting petroleum for others).

11. Exemption for Heavy Oils

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

12. General Power of Exemption

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

13. Inspection 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 the 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.

14. Inspection and Sampling of Petroleum

  1. The Central Government may, through an official notification, authorize an officer (either by name or by virtue of their office) to enter any premises where petroleum is being imported, transported, stored, produced, refined, or blended. The authorized officer has the power to inspect and take samples of the petroleum found at those locations 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, and how such payments will be made.
    3. The general procedures for officers exercising the powers outlined in this section.

15. Standard 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 with the words "Standard Test Apparatus". It will be checked and updated as needed, according to the rules under Section 21.
  3. The Standard Test Apparatus will be available for inspection by anyone who wants to check it, if they pay the required fee. Inspections can be done at reasonable times.

16. Certification of Other Test Apparatus

  1. The officer appointed under Section 15 will, upon payment of the required fee (if any), compare any apparatus used to test the flash-point of petroleum with the Standard Test Apparatus. People can submit their apparatus for this comparison.
  2. If the officer finds that the apparatus agrees with the Standard Test Apparatus within the allowed limits, the officer will:
    • Engrave a special number and the date of comparison on the apparatus.
    • Issue a certificate stating that the apparatus was compared with the Standard Test Apparatus and meets the required standards. The certificate will also mention any corrections needed in the test results using that apparatus.
  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, in the prescribed form.

17. Testing 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. The officer can also issue certificates based on the test results.

18. Manner 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.

19. Certificate 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. If it's Class B or Class C, the certificate will also state the flash-point of the petroleum.
  2. The officer must give a certified copy of the certificate to the person who requested it, for a fee. This certified copy can be used as evidence in court to prove the contents of the original certificate.
  3. A certificate issued under this section is admissible as evidence in any legal proceedings related to the petroleum sample tested. It is considered conclusive proof, unless proven otherwise, that the petroleum is Class A, Class B, or Class C, and if it is Class B or Class C, the certificate will also prove the flashpoint.

20. Right 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. To do this, the owner or their agent must apply to the officer (appointed under Section 14) and pay the required fee. Fresh samples of the petroleum will be taken and tested in the presence of the owner, their agent, or a person they choose to represent them.
  3. If the re-test shows that 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 to the owner or their agent.

21. Power to Make Rules Regarding Tests

The Central Government can create rules about the following:

  1. Standard Test Apparatus:
    • Setting standards for how the Standard Test Apparatus should be specified, checked, corrected, and replaced.
  2. Fees for Inspection:
    • Deciding how much will be charged for inspecting the Standard Test Apparatus.
  3. Comparing Test Apparatus:
    • Regulating the process for comparing other test equipment with the Standard Test Apparatus.
  4. Certificates for Test Apparatus:
    • Setting the format for certificates issued for test equipment that has been compared with the Standard Test Apparatus and determining how long these certificates are valid.
  5. Register of Certificates:
    • Deciding how the register of certificates for test apparatus should be maintained.
  6. Fees for Comparison:
    • Deciding the fees for comparing other test equipment with the Standard Test Apparatus.
  7. Testing Procedure:
    • Regulating how testing officers should carry out petroleum tests, including how to handle multiple samples from the same lot and the acceptable temperature variations during testing.
  8. Certificates of Petroleum Tests:
    • Setting the format for certificates of petroleum tests and deciding the fees for issuing them.
  9. Handling Doubts About Petroleum Quality:
    • If test results suggest that the petroleum quality may not be consistent, the rules can require dividing the petroleum into smaller parts (sub-lots) and testing samples from each part, with the results averaged across all sub-lots.
  10. Re-Test Fees and Refunds:
    • Setting fees for re-tests under Section 20 and deciding when these fees should be refunded if the original test was wrong.
  11. General Testing Procedures:
    • Setting rules for how officers should perform all duties related to testing petroleum and handling anything else related to testing.

22. Special 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 the rules made under Section 21 to make them suitable for testing these specific types of petroleum.

23. General Penalty for Offences under this Act

  1. Anyone who does the following can be punished:
    1. Breaks any rule in Chapter I or any related rules, like importing, transporting, storing, producing, refining, or blending petroleum illegally.
    2. Breaks any rule made under Section 4 or Section 5.
    3. If someone holds a license under Section 4 or is in charge of a place where petroleum is handled, and they break or allow others to break any condition of that license.
    4. If someone in charge of a place where petroleum is handled refuses to show any equipment or items used with petroleum during an inspection, or fails to help the inspector when asked.
    5. If someone refuses to show petroleum, give assistance, or let the inspector take samples of petroleum during an inspection.
    6. If someone is required by Section 27 to report an accident involving petroleum, and they fail to do so.

    Anyone guilty of these offences can be punished with:

    • Simple imprisonment for up to one month, or
    • A fine of up to 1,000 rupees, or
    • Both imprisonment and fine.
  2. If someone is convicted of this offence once and commits the same offence again, they will be punished more severely with:
    • Simple imprisonment for up to three months, or
    • A fine of up to 5,000 rupees, or
    • Both imprisonment and fine.

24. Confiscation of Petroleum and Receptacles

  1. If someone is convicted of an offence under Section 23, such as importing, transporting, or storing petroleum illegally (as mentioned in clauses (a), (b), or (c)), the Magistrate can order that:
    1. The petroleum involved in the offence be taken away (confiscated), or
    2. If the person was caught for importing, transporting, or storing more petroleum than they are allowed, the entire amount of petroleum they were handling can 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 the petroleum and receptacles if it is reviewing or hearing an appeal about the case.

25. Jurisdiction

  1. Offences under this Act will be tried in different courts based on the location:
    • In Presidency towns, the case will be tried by a Presidency Magistrate.
    • Outside the Presidency towns, the case will be tried by:
      • A Magistrate of the first class, or
      • A Magistrate of the second class who has been specially authorized by the Central Government.

26. Power 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 (imported, transported, stored, produced, refined, or blended) illegally or against the rules of this Act. The officer can:
  • Seize, detain, or remove any petroleum if the officer believes an offence has been committed under the Act.
  1. 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.
  2. The Central Government can make rules to guide the authorized officers on how to conduct searches, but these rules must follow the guidelines in the Code of Criminal Procedure.

27. Notice of Accidents with Petroleum

  1. If an accident occurs involving petroleum, such as an explosion or fire caused by the ignition of petroleum or its vapours, and it results in:
    • Loss of human life,
    • Serious injury to people or property,
    • Or any accident of this kind that usually causes such damage,

    The person in charge of the place (where petroleum is stored, refined, or blended), or the 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 and in a specific way to:
    • The nearest Magistrate,
    • The officer in charge of the nearest police station,
    • The Chief Controller of Explosives.

28. Inquiries 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. This is required unless the Coroners Act, 1871 applies to the situation.
  2. If an accident caused by the ignition of petroleum or petroleum vapour results in serious injury to people or property, but no one is killed, the Magistrate can still hold an inquiry to investigate the cause of the accident.
  3. A Commissioner of Police is also considered a Magistrate for 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.

29. Provisions 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 (which can be in one session or spread across multiple sessions). If both Houses of Parliament agree to change or cancel the rule within that time, the rule will either:
    • Only take effect in the changed form, or
    • Not take effect at all.

    However, any actions taken under the rule before this change will still be valid, even if the rule is modified or cancelled.

30. Power to apply Act to other substances

This section has been repealed by the Inflammable Substances Act, 1952 (Section 7).

31. Power 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.

32. Repeals

This section has been repealed by the Repealing Act, 1938 (Section 2 and the Schedule).

The Schedule lists the enactments that have been repealed.

THE END