Explanation

The Petroleum and Natural Gas Regulatory Board (PNGRB) was established under the PNGRB Act, 2006 to regulate the downstream petroleum and natural gas sector in India. Its primary objective is to ensure fair competition, consumer protection, and orderly development of infrastructure such as pipelines, storage, and distribution networks.

A key conceptual distinction is between upstream and downstream activities. Upstream refers to exploration and production of crude oil and natural gas, while downstream includes refining, transportation, distribution, marketing, and sale of petroleum products. PNGRB’s jurisdiction is largely confined to the downstream segment.

Statement I is incorrect. Production of crude oil is an upstream activity governed through policies of the Government of India and contracts with companies like ONGC and Oil India. It is not regulated by PNGRB.

Statement II is correct. Refining, storage, and distribution fall within the downstream sector. PNGRB regulates aspects such as petroleum and natural gas pipelines, storage infrastructure, and distribution networks to ensure efficient supply.

Statement III is correct. Marketing and sale of petroleum products are also part of the downstream domain. PNGRB plays a role in ensuring competitive markets and protection of consumer interests in these activities.

Statement IV is incorrect. Production of natural gas is again an upstream activity, similar to crude oil production, and is outside PNGRB’s regulatory scope.

Thus, only two activities (II and III) are regulated by PNGRB, highlighting that the Board is essentially a downstream regulator and does not deal with exploration or production.