PRELIMINARY
1. Short title, extend and commencement - This Act may be called the petroleum Act, 1934. This Act may be called the petroleum Act, 1934. This Act may be called the petroleum Act, 1934.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may by notification in the Official Gazette, appoint.

2. Definitions. - In this act unless there is anything repugnant in the subject or context,- In this act unless there is anything repugnant in the subject or context,- In this act unless there is anything repugnant in the subject or context,-

(a) "petroleum" means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture (liquid, viscous or solid) containing any liquid hydrocarbon;

(b) "petroleum Class A" means petroleum having a flash point below twenty-three degrees Centigrade;

(bb) "petroleum Class B" means petroleum having a flash point of twenty - three degrees Centigrade and above but below sixty-five degree Centigrade.;

(bbb) "petroleum Class C" means petroleum having a flash point of sixty - five degrees Centigrade and above but below ninety-three degrees Centigrade.

(c) "flash point" of any petroleum means the lowest temperature at which it yields a vapour which will give a momentary flash when ignited, determined in accordance with the provisions of Chapter II and the rules made there-under;

(d) "to transport petroleum" means to move petroleum from one place to another in India and includes moving from one place to another in India across a territory which is not part of India.

(e) "to import" petroleum means to bring it into (India ) by land, sea or air, otherwise than during the course of transport;

(f) "to store" petroleum means to keep it in any one place, but does not include any detention happening during the ordinary course of transport;

(g) " motor conveyance" means any vehicle, vessel or aircraft for the conveyance of human beings, animals or goods, by land, water or air, in which petroleum is used to generate the motive power;

(h) "prescribed" means prescribed by rules made under this Act.

CONTROL OVER PETROLEUM

3. Import, transport and storage of petroleum -

(1) No one shall import, transport or store any petroleum save in accordance with the rules made under Section 4.

(2) Save in accordance with the conditions of any licence for the purpose which he may be required to obtain by rule made under Section 4, no one shall import (petroleum Class A), and no one shall transport or store any petroleum.

4. Rules for the import, transport and storage or petroleum - The central Government may make rules- The central Government may make rules-

1. Prescribing places where petroleum may be imported and prohibiting its import elsewhere;

2. regulating the import of petroleum

3. prescribing the periods within which licence for the import of (petroleum Class A) shall be applied for, and providing for the disposal, by confiscation or otherwise of any (Petroleum Class A) in respect of which a licence has not been applied for within the prescribed period or has been refused and which has not been exported;

4. regulating the transport of petroleum;

5. specifying the nature and condition of all receptacles and pipelines in which petroleum may be transported;

6. regulating the places at which and prescribing the conditions subject to which petroleum may be stored;

7. specifying the nature, situation and condition of all receptacles in which petroleum may be stored;

8. prescribing the form and conditions of licence for the import of (petroleum Class A), and for the transport or storage of any petroleum, the manner in which applications for such licences shall be made, the authorities which may grant such licences and the fees which may be charged for such licences.

9. determining in any class of cases whether a licence for the transport of petroleum shall be obtained by the consignor, consignee or carrier;

10. providing for the granting of combined licences for the import transport and storage of petroleum, or for any two of such purposes;

11. prescribing the proportion in which any specified poisonous substance may be added to petroleum, and prohibiting the import, transport or storage of petroleum in which the proportion of any specified poisonous substance exceeds the prescribed proportion; and

12. generally, providing for any matter which in (its) opinion is expedient for proper control over the import, transport and storage of petroleum (including the charging of fees for any services rendered in connection with the import, transport and storage of petroleum.

5. Production, refining and blending of petroleum -

(1) No one shall produce, refine or blend petroleum save in accordance with the rules made under sub-section (2)

(2) The (Central Government) may make rules-

1. prescribing the conditions subject to which petroleum may be produced, refined or blended; and
2. regulating the removal of petroleum from places where it is produced, refined or blended and preventing the storage therein and removal there from, except as (petroleum Class A), of any petroleum which has not satisfied the prescribed tests.

All receptacles containing (petroleum Class A) shall have a stamped, embossed, painted or printed warning either on the receptacle itself or, where that is impracticable, displayed near the receptacle, exhibiting in conspicuous characters the words "Petrol" or "Motor Spirit", or an equivalent warning of the dangerous nature of the petroleum :

Provided that this section shall not apply to --

1. Any securely stoppered glass, stoneware or metal receptacle of less than (ten litres) capacity containing (petroleum Class A) which is not for sale, or
   
2. a tank incorporated in a motor conveyance, or attached to an internal combustion engine, and containing petroleum intended to be used to generate motive power for the motor conveyance or engine, or
   
3. a pipe-line for the transport of petroleum, or
   
4. any tank which is wholly underground, or
   
5. any class of receptacles which the Central Government may, be notification in the Official Gazette exempted from the operation of this section.