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THE PETROLEUM ACT, 1934

Title : THE PETROLEUM ACT, 1934

Year : 1934

[6th September, 1934.]1*

An Act to consolidate and amend the law relating to the import, transport, storage, production, refining and blending of petroleum

WHEREAS it is expedient to consolidate and amend the law relating to the import, transport, storage, production, refining and blending of petroleum 2*;

It is hereby enacted as follows:-

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1. For Statement of objects and Reasons, see Gazette of India, 1933, Pt. V, p. 104 and for Report of Select Committee, see Gazette of India, 1934, Pt. V, pp. 235-236.

2. The Words "and other inflammable substances" omitted by Act 24 of 1970, s. 2 (w.e.f. 1-8-1976).

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PRELIMINARY




(1) This Act may be called the Petroleum Act, 1934.1*

(2) It extends 2* to the whole of India 3***.]

(3) It shall come into force on such date 4* as the Central
Central Government may, by notification in the Official Gazette, appoint.

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1. Subs. by the A.O. 1950, for the former sub-section.

2. This Act has been extended to Berar by the Petroleum (Berar Extension) Act, 1937 (23 of 1937). All rules made and notifications issued under this Act and in force in British India at the commencement of Act 23 of 1937 (i.e., the 7th October, 1937) have also been extended to Berar by s. 3 of the latter Act.*Extended to Goa, Daman and Diu with modifications, by Reg. 12 of 1962, s. 3 and Sch.
Extended and brought into force in Dadra and Nagar Haveli (w.e.f.1.7.1965) vide Reg. 6 of 1963, s. 2 and Sch. I.
The Act comes into force in Pondicherry on 1.10.1963 vide Reg. 7.of 1963, s. 3 and Sch. I. Extended to Laccadive, Minicoy and Amindivi Islands (w.e.f.1.10.1967); vide Reg. 8 of 1965, s. 3 and Sch.

3. The words "except the State of Jammu and Kashmir" omitted by Act 62 of 1956, s. 2 and Sch.

4. 30th March. 1937. see Gazette of India. 1937, Pt. I. p. 632.

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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 degrees 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) "1*[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 thereunder;

(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 2*[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.

3* * * * *

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1. Subs. by Act 24 of 1970, s. 3, for cl. (b) (w.e.f. 1-8-1976).

2. Subs. by s. 3, ibid., for "flashing-point" (w.e.f. 1-8-1976).

3. Cl. (i) ins. by the A.O. 1950, omitted by Act 3 of 1951, s. 3 and
Sch.

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(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 rules made under section-4, no one shall import 1*[petroleum Class A], and no one shall transport or store any petroleum.

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1. Subs. by Act 24 of 1970, s. 4, for "any dangerous petroleum"
(w.e.f. 1-8-1976).

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Rules for the import, transport and storage of petroleum. The
Central Government may make rules-

(a) Prescribing places where petroleum may be imported and prohibiting its import elsewhere:

(b) Regulating the import of petroleum;

(c) Prescribing the periods within which licences for the import of 1*[petroleum Class A] shall be applied for, and providing for the disposal, by confiscation or otherwise, of any 1*[petroleum

(d) Regulating the transport of petroleum;

(e) Specifying the nature and condition of all receptacles and pipelines in which petroleum may be transported:

(f) Regulating the places at which and prescribing the conditions subject to which petroleum may be stored;

(g) Specifying the nature, situation and condition of all receptacles in which petroleum may be stored;

(h) Prescribing the form and conditions of licences for the import of 2*[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;

(i) Determining in any class of cases whether a licence for the transport of petroleum shall be obtained by the consignor, consignee or carrier;

(j) Providing for the granting of combined licences for the import, transport and storage of petroleum, or for any two of such purposes;

(k) 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

(l) Generally, providing for any matter which in 3*[its]opinion is expedient for proper control over the import, transport and storage of petroleum 4*[including the charging of fees for any services rendered in connection with the import, transport and storage of petroleum].

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1. 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;

2. Subs. by Act 24 of 1970, s. 5, for "dangerous petroleum" (w.e.f.
1-8-1976).

3. Subs. by the A.O. 1937, for "his".

4. Ins. by Act 24 of 1970, s. 5 (w.e.f. 1-8-1976).

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(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-

(a) Prescribing the conditions subject to which petroleum may be produced, refined or blended; and

(b) Regulating the removal of petroleum from places where it is produced, refined or blended and preventing the storage therein and removal therefrom, except as 1*[petroleum Class A], of any petroleum which has not satisfied the prescribed tests.

2* * * * *

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1. Subs. by Act 24 of 1970, s. 6, for "dangerous petroleum" (w.e.f.
1-8-1976).

2. Sub-section (3) omitted by the A.O. 1937.

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All receptacles containing 1*[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-

(a) Any securely stoppered glass, stoneware or metal receptacle of less than 2*[ten litres] capacity containing 1*[petroleum Class A] which is not for sale, or

(b) 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

(c) A pipe-line for the transport of petroleum, or

(d) Any tank which is wholly underground, or

(e) Any class of receptacles which the Central Government may, by notification in the Official Gazette, exempt from the operation of this section.

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1. Subs. by Act 24 of 1970, s. 7, for "dangerous petroleum" (w.e.f.
1-8-1976).

2. Subs. by s. 7, ibid., for "two gallons" (w.e.f. 1-8-1976).

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Storage of limited quantities of petroleum Class B or petroleum Class C Notwithstanding anything contained in this Chapter, a person need not obtain a licence for the transport or storage of-

(i) Petroleum Class B if the total quantity in his possession at any one place does not exceed two thousand and five hundred litres and none of it is contained in a receptacle exceeding one thousand litres in capacity; or

(ii) Petroleum Class C if the total quantity in his possession at any one place does not exceed forty-five thousand litres and such petroleum is transported or stored in accordance with the rules made under section


 
(1) Notwithstanding anything contained in this Chapter, a person need not obtain a licence for the import, transport or storage of petroleum Class A not intended for sale if the total quantity in his possession does not exceed thirty litres.

(2) Petroleum Class A possessed without a licence under this section shall be kept in securely stoppered receptacles of glass, stoneware or metal which shall not, in the case of receptacles of glass or stoneware, exceed one litre in capacity or, in the case of receptacles of metal, exceed twenty-five litres in capacity.]



(1) The owner of a motor conveyance, who complies with the requirements of the law for the time being in force relating to the registration and licensing of such conveyance and its driver or pilot and the owner of any stationary internal combustion engine, shall not be required to obtain a license-

(a) for the import, transport or storage of any petroleum contained in any fuel tank incorporated in the conveyance or attached to the internal combustion engine, or

(b) for the transport or storage of 1*[petroleum Class A], not exceeding 2*[one hundred liters] in quantity in addition to any quantity possessed under clause (a):

Provided the petroleum is intended to be used to generate motive power for the motor conveyance or engine:

Provided further that the total quantity of 1*[petroleum Class A] which may be stored without a licence under clause (b) shall not exceed 2*[one hundred litres], notwithstanding that such owner may possess other motor conveyances or engines.]

(2) Petroleum Class A] transported or stored without a licence under clause (b) 3*[of sub-section (1)] shall be kept as provided in sub-section (2) of section 8, and, if it exceeds 5*[thirty litres] in quantity, shall be stored in an isolated place which does not communicate with any room where any person resides or works or in any room where persons assemble.

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1. Subs. by Act 24 of 1970, s. 9, for "dangerous petroleum" (w.e.f.
1-8-1976).

2. Subs. by s. 9, ibid, for "twenty gallons" (w.e.f. 1-8-1976).

3. Ins. by Act 25 of 1940. s. 2.

4. Subs. by Act 24 of 1970, s. 9, for "The dangerous petroleum"
(w.e.f. 1-8-1976).

5. Subs. by s. 9, ibid., for "six gallons" (w.e.f. 1-8-1976).
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Notwithstanding anything contained in this Chapter, a railway administration, as defined in section 3 of the Indian Railways Act, 1890 (9 of 1890), need not obtain any licence for the import or transport of any petroleum in its possession in its capacity as carrier.



Nothing in this Chapter shall apply to any petroleum which has its flash-point not below ninety-three degrees Centigrade.]



The Central Government may, by notification in the Official Gazette, exempt any petroleum specified in the notification from all or any of the provisions of this Chapter.


 
(1) The Central Government may authorise any officer by name or by virtue of office to enter any place where petroleum is being imported, stored, produced, refined or blended, or is under transport, and inspect all receptacles, plant and appliances use in connection with petroleum in order to ascertain if they are in accordance with the provisions of this Chapter and the rules made there under.

(2) The Central Government may make rules regulating the procedure of officers authorised under this section.
Last updated on June, 2016

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