Petroleum Act draft: Licence breaches may no longer be criminal, but repeat violations could cost ₹5 crore

The Ministry of Petroleum and Natural Gas on Wednesday released the draft Petroleum (Amendment) Bill, 2026, for public and stakeholder consultation. Comments and suggestions on the proposed legislation can be submitted until October 30. What changes for licence holders? 5 crore for the first breach. The adjudicating officer could also direct the licence holder to take corrective action or comply with the relevant requirement. The proposed penalties would be separate from any other liability arising from the violation. Why is the government proposing the change? The Petroleum Act's offence framework has remained largely unchanged since its last major amendment in 1970. 90 per litre in 1970, compared with roughly ₹95-105 in 2026, an increase of more than 10,000%. The draft also proposes punishment for obtaining a licence fraudulently through misrepresentation, impersonation or other dishonest means. The draft Bill is currently at the consultation stage and is not yet law. The government has invited comments and suggestions from stakeholders and members of the public until October 30, 2026. About the AuthorLivemintFor about a decade, Livemint—News Desk has been a credible source for authentic and timely news, and well-researched analysis on national news, business, personal finance, corporates, politics and geopolitics. We bring the latest updates on all the listed companies on BSE and NSE, startups, mutual funds, Union ministries, geopolitics, and untapped human interest stories from around the world, helping our readers to stay informed on the latest developments around the globe.