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MINISTRY OF PETROLEUM &
NATURAL GAS
ORDER
New Delhi, the 16th
April, 1999
G.S.R. 272(E) – In
exercise of the powers conferred by section 3 of the Essential Commodities
Act., 1955 (10 of 1955), in order to regulate production, storage and
supply of petroleum products in the interest of sustaining public life,
economy and protecting consumers interest, the Central Government hereby
makes the following order, namely :-
Short title, extent and
commencement – (i) This order may be called the Petroleum Products
(Maintenance of Production, Storage and supply) Order, 1999.
It shall come into
force on the date of its publication in the Official Gazette.
Definitions – In this
Order, unless the context otherwise requires, -
"bulk sale"
means sale of petroleum products other than retail sale;
"dealer"
means any person, firm or company who carries on, directly or
otherwise, the business of storage, distribution and sale of petroleum
products, in bulk or retail.
"depot" means
any premises approved or licensed by the Chief Controller of
explosives for storage of petroleum products;
"installation"
means any premises wherein any place has been specially prepared for
the storage of petroleum in bulk, but does not include a well-head
tank or service station;
"oil marketing
companies" means any person, firm or company engaged in sale of
petroleum products to dealers or consumers in bulk or retail :
"oil refining
companies" means any person, firm or company engaged in refining
crude or re-refining of crude oil or any derivatives thereof :
"petroleum
products" means crude oil or any product manufactured our of
crude oil or from another petroleum product including Aviation Turbine
Oil, Motor Spirit, High Speed Diesel, Liquefied Petroleum Gas,
Superior Kerosene Oil, Naphtha and Solvent or any derivative.
"retail
outlet" means filling station in which one or more dispensing
pumps have been provided for retail sale of Motor Spirit and/or High
Speed Diesel or an LPG distributorship or a Kerosene dealership.
"retail sale"
means sale of petroleum products not exceeding 2500 liters to any one
customer at a time.
Maintenance of
production of petroleum products – (1) Where the Central Government
is satisfied that it is necessary in the public interest so to do, it
may by order in writing, direct any oil refining company to maintain
or cause to be maintained a level of production of such product or mix
subject to such terms and conditions as may be specified .
Provided that no such
direction shall be passed by that Government unless the parties are
given reasonable opportunity of being heard.
(2) (i) The direction
under sub clause (1) may provide for the maintenance of the production
of any petroleum product for such period and in such quantities or
proportions and of such specification as may be specified therein.
Such direction may
also contain such supplemental or incidental provisions as the
Central Government may consider necessary.
In issuing the
direction under sub clause (I), the Central Government shall have
regard to –the capacity of
oil-refining company to produce any petroleum product on the date
of issuing such direction;the highest average
quantity of production of such product or products of the company
for the preceding five years or since inception whichever is
later, after taking into account seasonal fluctuations in
production;
type of crude oil
availability and operational flexibility existing in the refinery;
any other relevant
factor including viability of the refining operation
Maintenance of stocks of petroleum
products – (1) If, with a view to ensuring
the maintenance of adequate supplies of petroleum products, the
Central Government is of opinion that it is necessary in the public
interest so to do so, it may, by an order in writing, direct all or
any oil-refining company or companies or oil marketing company or
companies to maintain, or cause to be maintained, by such data and for
such period ad may be specified in the said order, such stock of
petroleum products as may be specified therein and to maintain an
inventory of such stock in such form and in such manner as may be
specified therein.
Such order may also
contain such supplemental or incidental directions, as the Central
Government may consider necessary.
Before issuing any
order under sub clause (I), the Central Government shall have due
regard to -
operating level
of the associated refineries, dead stocks, periodic cleaning of
tanks, minimum storage space required for receiving fresh
supplies from tank wagons, pipeline or tanker or both, and
cushion for absorbing variations in operations and tanker
arrival schedules :
(ii)any other
relevant factor
Regulation of supply and distribution
of petroleum products – (1) The Central
Government for uninterrupted and equitable distribution and availability
of petroleum products may, by order, require any oil marketing company
to supply or cause to be supplied one or more petroleum products from
the stocks held by it at any place in India to installations or depots
of any oil marketing companies in such quantities and in such manner as
may be specified therein and for this purpose may, by the same or a
different order, require any oil refining company to make available to
the oil marketing company such petroleum product or products for a
period specified in the order.
Every person-in-charge of
any installation or depot, shall on receipt of the petroleum product or
products supplied by any oil marketing company whether in pursuance of
any order made under sub-clause (1) or otherwise, distribute and sell
the same in such areas and such manner, as specified:
Provided that the Central
Government at any time, may, issue such further directions to the
period-in-charge of a depot or installation as may be necessary for
equitable distribution of such petroleum product or products;
Provided further that the
Central Government may by general or special order authorize any State
Government or its Officers, to issue such directions to the
person-in-charge of a depot or installation as may be necessary for the
equitable distribution, of such petroleum product or products subject to
such terms and conditions, as many be specified.
The order referred to in
sub-clause (1) may contain such supplemental or incidental provisions
relating to the supply of any petroleum product including prices and
other charges as the Central Government may consider necessary.
Regulation of retail supply of
petroleum products – (1) Where under any
agreement between a dealer and an oil marketing company, a petroleum
product is to be supplied at a retail outlet, and the Central Government
is of the opinion that such petroleum product may not be available at a
retail outlet for any reason whatsoever, either wholly or partially to
meet the demand of the general public, it may, by order in writing,
direct any other oil marketing company to deliver, for such period as
may be specified in the order or such period by which the original
supplying company is able to restore the supply, such petroleum product
at such retail outlet and thereupon it shall be the duty of the oil
marketing company specified in the order to deliver, and of the dealer
to receive and sell the petroleum product so ordered to be delivered
against price and other charges.
The order may under
sub-clause (1) shall have effect notwithstanding anything to the
contrary contained in any agreement between the dealer and the oil
distributing company.
No suit, prosecution,
legal proceedings or any other action shall lie against the oil
marketing company or a dealer for storing, receiving and selling any
petroleum product in accordance with the order made under sub-clause
(1).
Take over of retail
outlets and other business premises of dealers – (1) If, with a view
to ensuring adequate supplies of petroleum products and their equitable
distribution, the Central Government, after giving opportunity of
hearing to the dealer or dealers, is of the opinion that it is necessary
in the public interest so to do, it may, by an order in writing, direct
all or any oil marketing companies or any officer of the Central
Government or State Government not below the rank of District Supply
Officer as may be specified, to take over or cause to take over an
operate, either by themselves or any other period appointed by them, any
retail outlet and/or business premises like showroom, godown, office,
storage, premises, tanks and dispensing equipment of dealers for sale of
any petroleum products for such period as specified in the order subject
to such conditions and directions as may be considered necessary and
expedient.
The order referred in
sub-clause (1) may contain such supplemental or incidental provisions
relating to the take over including such payment as the Central
Government may consider necessary.
The Order made under
sub0clause (1) shall have effect notwithstanding anything to the
contrary contained in any other control order or agreement between the
dealer and the oil marketing company.
Collection of information
– (1) Every oil refining company shall furnish to the Central
Government or an agency nominated by Central Government and every
information that may be asked for in regard to the procurement,
stocking, movements (on shore or off shore), transfers, imports, exports
and sales of crude oil and or all products at such period, in such
manner and from such of the sources, as may be specified from time to
time, in addition to information relating to the following matters and
within the time mentioned against each in respect of such petroleum
product or products as may be specified by the Central Government,
namely :-
figures of actual
production of each petroleum product and the total crude through put in
each of the refineries of the oil refining companies in respect of the
preceding month by the 4th day of every month ;
product-wise production
programme and expected crude throughput in respect of each refinery of
the oil refining companies for the next month by the 10th day
of every month ;
figures of stock
separately, of petroleum products held on each preceding Monday or on
the first day of the preceding month, as may be specified in the
refinery’s tanks, every Wednesday or 5th day of the
subsequent month, as the case may be;
actual coastal shipment
of petroleum products made by it to any port in India in the preceding
month by the 4th day of every month;
Information about each
tanker shipment of petroleum products made by it together with the
information on the following matters :
Name of tanker;
Cargo carried,
stating separately the quantities of each petroleum product;
Destination of the
shipment ;
Date of sailing of
the tanker with the expected date of its arrival at the destination;
Actual date of
arrival of the tanker at the destination;
Name of the consignee
of the shipment and, where there is more than one consignee, the
quantities to be delivered to each consignee within two days of each
sailing of tanker and arrival thereof :
figures of total
quantities of supplies made on shore in each week or month as may be
specified to each supply area, separately for each petroleum product,
for the preceding week ending on Sunday/month, as the case may be, every
Wednesday or 5th day of the subsequent month.’
Every oil marketing
company shall furnish to the Central Government or an agency nominated
by Central Government any and every information that may be asked for in
regard to the refining, stocking, movements (on shore or off shore),
transfers, imports, exports and sales of petroleum crude and any or all
products, refined there from, at such periods, in such manner and from
such of the sources as may be specified from time to time, in addition
to information relating to the following matters and within the time
mentioned against each matter in respect of such petroleum product or
products as may be specified b y the Central Government, namely ;
stocks of petroleum
products held by it on the preceding Monday or on the first day of
the preceding month as may be specified at every main port
installation or any deport and separately stocks of petroleum
products in transit for each such port installation or depot, by
following Wednesday or 5th day of the subsequent month,
as the case may be ;
quantity of petroleum
products sold party-wise during the month by 10th day of
the subsequent month;
actual coastal
shipments of petroleum products made by it to any port in Indian in
the preceding month, by the 4th day of every month;
information about
each tanker shipment of petroleum products made by it together with
the information on the following matters :-
Name of tanker;
Cargo carried,
stating separately the quantities of each petroleum product;
Destination of the
shipment ;
Date of sailing of
the tanker with the expected date of its arrival at the
destination;
Actual date of
arrival of the tanker at the destination;
Name of the
consignee of the shipment and, where there is more than one
consignee, the quantities to be delivered to each consignee within
two days of each sailing of tanker and arrival thereof
figures of total
quantities of supplies made to different customers on the shore in
each week of month as may be specified to each supply area,
separately for each petroleum product, for the preceding week ending
on Sunday or month, as the case may be, by every Wednesday, or 5tgh
day of the subsequent month.
Every crude oil
manufacturing company/crude oil importer shall furnish to the Central
Government or an agency nominated by Central Government any and every
nomination that may be asked for in regard to the refining, stocking,
movements (on shore or off shore), transfers, imports, exports and sales
of petroleum crude and any or all products, refined there from, at such
periods, in such manner and from such of the sources as may be specified
from time to time, in addition to information relating to the following
matters and within the time mentioned against each matter in respect of
such petroleum product or products as may be specified by the Central
government, namely :-
stocks of petroleum
crude held by it on the preceding Monday or on the first day of the
preceding month as may be specified at every main crude production
centre or any other intermediate crude storage center and separately
stocks of crude in transit for each such crude storage center, by
following Wednesday or 5th day of the subsequent month as
the case may be;
quantity of petroleum
crude produced by it during the preceding month by the 5th
day of every month ;
actual coastal
shipments of crude made by it to any port in India in the preceding
month, by the 4th day of every month;
information about
each tanker shipment of crude made by it together with the
information on the following matters :-
Name of tanker;
Cargo carried
Destination of the
shipment ;
Date of sailing of
the tanker with the expected date of its arrival at the
destination;
Actual date of
arrival of the tanker at the destination;
Name of the
consignee of the shipment and, where there is more than one
consignee, the quantities to be delivered to each consignee within two
days of each sailing of tanker and arrival thereof
figures of total
quantities of supplies made to different customers on the shore in
each week of month as may be specified to each refinery, for the
preceding week ending on Sunday/month, as the case may be , by every
Wednesday, or 5th day of the subsequent month.
Every company importing
petroleum products either for its own consumption or for marketing
purposes shall furnish to the Central government or an agency nominated
by Central Government any and every information that may be asked for in
regard to the refining, stocking, movements (on shore or off shore),
transfers, imports, exports and sales of petroleum crude and any or all
products, refined there from, at such periods, in such manner and from
such of the sources as may be specified from time to time, in addition
to information relating to the following matters and within the time
mentioned against each matter in respect of such petroleum product or
products as may be specified by the Central government, namely :-
stocks of petroleum
products held by it on the preceding Monday or on the first day of
the preceding month as may be specified at every main port
installation or any depot and separately stocks of petroleum
products in transit for each such port installation or depot, by
following Wednesday or 5th day of the subsequent month as
the case may be :
quantity imported,
separately for each petroleum product during the month together with
source of import, name of the port and date of import, by 5th
day of the subsequent month;
quantity of petroleum
products sold party-wise during the month by 10th day of
the subsequent month;
actual coastal
shipments of petroleum products made by it to any port in India in
the preceding month, by the 4th day of every month;
information about
each tanker shipment of petroleum products made by it together with
the information on the following matter :
Name of tanker;
Cargo carried,
stating separately the quantities of each petroleum product;
Destination of the
shipment ;
Date of sailing of
the tanker with the expected date of its arrival at the
destination;
Actual date of
arrival of the tanker at the destination;
Name of the
consignee of the shipment and, where there is more than one
consignee, the quantities to be delivered to each consignee within
two days of each sailing of tanker and arrival thereof :
figures of total
quantities of supplies made to different customers on the shore in
each week of month as may be specified to each supply area,
separately for each petroleum product, for the preceding week ending
on Sunday/month, as the case may be, by every Wednesday, or 5th
day of the subsequent month.
Power of entry, search
and seizure – Any Gazetted Officer of Central or State Government or
any police officer not below the rank of Deputy superintendent of Police
duty authroised by general or special order by Central Government or
State government as the case may be or any officer of a government oil
company, not below rank of Sales Officer’s may, with a view to
securing compliance with this order or to satisfy himself that this
order or any other made there under has been complied with :-
Stop and search any
vessel or vehicle used or capable of being used for the transport of
any petroleum product :
Enter and search any
place;
Seize stocks of any
crude oil or petroleum product in respect of which he has reason to
believe that a contravention of this order has been, or is being, or
is about to be made.
Explanation : For the
purpose of this clause "government oil company" means an oil
refining company or oil marketing company which is a government company
as defined under Section 617 of Companies Act, 1956 :
Repeal and Saving
– (1) the Petroleum Products (Collection of Information) Order 1966,
the Petroleum Products (Maintenance of Production Order 1970, the
Petroleum Products (Regulation of Supply of retail Outlets) Order 1974,
the Petroleum Products (supply and Distribution) Order 1972, and the
Petroleum (Storage) Order 1971 are hereby repealed except in respect of
things done or omitted to be done under those orders before the
commencement of this order.
Notwithstanding such
repeal anything done or any action taken under the said order shall be
deemed to have been done or taken under the corresponding provisions of
this order.
(File no.P-11013/2/97-Dist.)
DEVI DAYAL, Addl. Secy.
Source : Ministry of Petroleum and
Natural Gas (Government of India)
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