Consider the following activities:Production of crude oilRefining, storage and distribution of petro

Q: What is UPSC Prelims?

UPSC Prelims is a competitive examination conducted in India. This question is from the 2025 UPSC Prelims Economy paper.

Q: How can I prepare for UPSC Prelims Economy?

To prepare for UPSC Prelims Economy, practice previous year questions (PYQs), understand concepts thoroughly, and solve mock tests regularly. This 2025 question covers Industry & Infrastructure – Make in India, PLI & FDI Policy topic.

Q: What is the difficulty level of this question?

This UPSC Prelims 2025 Economy question has a hard difficulty level and is marked as an important question.

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You can find more UPSC Prelims previous year questions on AspirantMitraa. Browse by subject, topic, year, and difficulty level to practice effectively.

Question

Consider the following activities:Production of crude oilRefining, storage and distribution of petroleumMarketing and sale of petroleum productsProduction of natural gasHow many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

Accepted Answer

Correct Answer: B — Only twoStep-by-step Solution:The Petroleum and Natural Gas Regulatory Board (PNGRB) was established under the PNGRB Act, 2006 to regulate downstream activities in the petroleum and natural gas sector.Statement I — Production of crude oil: This is incorrect. Production of crude oil is an upstream activity (exploration and extraction) and is regulated by the Directorate General of Hydrocarbons (DGH), not PNGRB.Statement II — Refining, storage and distribution of petroleum: This is correct. PNGRB regulates downstream activities including refining, storage, transportation and distribution of petroleum products.Statement III — Marketing and sale of petroleum products: This is correct. PNGRB also covers marketing and sale of petroleum products as part of its downstream regulatory framework.Statement IV — Production of natural gas: This is incorrect. Like crude oil, production of natural gas is an upstream activity and is regulated by the Directorate General of Hydrocarbons, not PNGRB.Conclusion: Only Statements II and III are correct. Hence, the correct answer is Only two.Key Concept: The petroleum sector is divided into three segments: Upstream (exploration and production) regulated by the Directorate General of Hydrocarbons; Midstream (transportation and storage) regulated by PNGRB; and Downstream (refining, distribution, marketing and sale) where PNGRB plays a regulatory role in ensuring fair competition and consumer protection. The PNGRB Act, 2006 explicitly excludes production activities from its jurisdiction.

Consider the following activities:Production of crude oilRefining, storage and distribution of petroleumMarketing and sale of petroleum productsProduction of natural gasHow many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

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Consider the following activities:Production of crude oilRefining, storage and distribution of petroleumMarketing and sale of petroleum productsProduction of natural gasHow many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

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