The ministry proposes decriminalising licence-term breaches and new tampering offences with fines up to US$1.8 million (INR150 million) for a first offence; comments close 30 October 2026.
India's Ministry of Petroleum and Natural Gas has invited comment from stakeholders on the draft Petroleum (Amendment) Bill, 2026, which seeks to amend the penalties and procedure under The Petroleum Act, 1934.
The amendment proposes decriminalising breach of the terms and conditions for licences and making licences mandatory for specific activities only. Where an activity is undertaken in violation of mandatory licences, it proposes imprisonment of up to three years or a fine of up to US$3 million (INR250 million) (USD2.6 million). It also proposes a new provision on obtaining licences fraudulently or through dishonest means.
A new provision would prohibit tampering with production, import, storage, refining, transportation and blending of petroleum. For a first offence, a person found responsible may be imprisoned for up to five years, fined up to US$1.8 million (INR150 million), or both. For every subsequent violation, the bill proposes imprisonment of up to seven years, a fine of up to US$3 million (INR250 million), or both.
The amendment would also impose importance on correct warning labels on receptacles of petroleum and introduce penalties for failure to comply. Several other provisions on criminal conspiracy, abetting, damage to critical infrastructure, obstruction and notification requirements are proposed.
Comments and suggestions were invited by email to the ministry until 30 October 2026.
