# Petroleum Act draft decriminalises licence breaches, raises fines

2026-10-01T00:13:40+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

The Ministry of Petroleum and Natural Gas has released the draft Petroleum (Amendment) Bill, 2026, proposing to treat breaches of licence terms as regulatory violations rather than criminal offences. Livemint reports that under proposed Section 23C, a first breach could draw a civil penalty of up to Rs 2.5 crore, while a second or subsequent breach could cost up to Rs 5 crore. The Hindu Businessline notes the government aims to decriminalise minor offences under the Petroleum Act, 1934. The existing penalty framework, last amended in 1970, has become inadequate given the sector's scale, the government said. Livemint reports that petrol cost around Rs 0.90 per litre in 1970 versus Rs 95 to 105 in 2026. Unlicensed petroleum activity could still attract imprisonment of up to three years and a fine of up to Rs 25 crore. Damage to critical petroleum infrastructure could draw up to 10 years in prison and a fine of up to Rs 25 crore. The draft is open for stakeholder comments until October 30, 2026.

## Indian Opinion Analysis

Both Livemint and The Hindu Businessline cover the Petroleum Act draft as a neutral policy announcement, with no discernible slant. Each source leads with the decriminalisation of licence breaches and the steep new fines for serious offences, citing identical government data on petrol prices and refinery capacity since 1970. Neither outlet questions the government's rationale or omits key figures. The uniform coverage reflects wire-style reporting of a consultation-stage bill, leaving the outcome open until feedback closes on October 30, 2026.

## Coverage

Coverage: 2 sources, 2 neutral
- livemint.com (neutral report) <https://www.livemint.com/news/india/petroleum-act-draft-licence-breaches-may-no-longer-be-criminal-but-repeat-violations-could-cost-rs-5-crore-11790792918451.html>
  Straight news-agency style, leads with penalty figures and government rationale
- thehindubusinessline.com (neutral report) <https://www.thehindubusinessline.com/economy/policy/oil-ministry-aims-to-amend-petroleum-act-to-decriminalise-minor-offences/article71529470.ece>
  Straight news-agency style, leads with decriminalisation objective and stakeholder deadline

This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry.

Tags: Civil Penalty, decriminalisation, Ministry of Petroleum and Natural Gas, Petroleum Act 1934
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How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/
