📘 IAS Prelims 2025 — GS-I Q.60 | Classroom Explanation

(Economics | Energy Regulation in India)

📌 Question

Q.60) Consider the following activities:

I. Production of crude oil
II. Refining, storage and distribution of petroleum
III. Marketing and sale of petroleum products
IV. Production of natural gas

How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB) in India?

(a) Only one
(b) Only two
(c) Only three
(d) All the four

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✅ Correct Answer: (b) Only two

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🧑‍🏫 Classroom Explanation

This question checks clarity on the regulatory domain of PNGRB, a frequent UPSC trap area where production vs downstream activities must be sharply distinguished.

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🔍 Core Concept: What does PNGRB regulate?

The Petroleum and Natural Gas Regulatory Board (PNGRB) was established under the PNGRB Act, 2006 to:

• Protect consumer interests
• Promote competition
• Regulate downstream petroleum and natural gas activities

⚠️ Key Line to Lock
👉 PNGRB regulates downstream activities, not production.

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🧾 Statement-wise Analysis

❌ Statement I: Production of crude oil

• Not regulated by PNGRB
• Crude oil production falls under:

• Ministry of Petroleum & Natural Gas
• Directorate General of Hydrocarbons (DGH)

➡️ Statement I is NOT correct

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✅ Statement II: Refining, storage and distribution of petroleum

• Explicitly mentioned in the PNGRB Act
• These are downstream activities

➡️ Statement II is correct

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✅ Statement III: Marketing and sale of petroleum products

• PNGRB regulates:

• Marketing authorisations
• Pipeline access
• Fair competition & consumer protection

➡️ Statement III is correct

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❌ Statement IV: Production of natural gas

• Like crude oil, natural gas production is excluded from PNGRB’s mandate
• Regulated upstream by:

• Government & DGH

➡️ Statement IV is NOT correct

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🧮 UPSC-Style Count

Activity	Regulated by PNGRB?
I. Crude oil production	❌
II. Refining, storage, distribution	✅
III. Marketing & sale	✅
IV. Natural gas production	❌

👉 Total regulated activities = 2

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🎯 Final Answer

✅ Correct Answer: (b) Only two

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📦 High-Value Prelims Add-Ons

🧠 One-Line Memory Hook

“PNGRB stops at the wellhead.”
(Upstream ❌ | Downstream ✅)

⚠️ Common UPSC Trap

• Production ≠ Regulation by PNGRB
• PNGRB ≠ DGH

📌 Related Bodies (Fast Recall)

PNGRB → Pipelines, refining, marketing, distribution

DGH → Exploration & production

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