Strict Punishments Outlined for Damage to Petroleum Infrastructure

A fresh draft of the Petroleum (Amendment) Bill, 2026, released by the central government, places heightened emphasis on safeguarding India’s petroleum infrastructure. The document proposes severe criminal liabilities for any act that harms pipelines, refineries, storage units or related assets.

First‑time offenders responsible for vandalism, fuel pilferage or actions that jeopardise worker safety could face imprisonment of up to five years and a fine of up to ₹15 crore. Should the same entity repeat the offence, the punishment escalates to a maximum of seven years’ imprisonment and a fine of up to ₹25 crore.

In cases where the damage is extensive or results in large‑scale disruption, the Bill allows for a ten‑year jail term and a fine of up to ₹25 crore, or the actual cost of the damage – whichever is lower.

The legislation also maintains a separate regime for unauthorised petroleum activities. Operating without a licence may attract up to three years in prison, a fine of up to ₹25 crore, or both, with an additional daily penalty of ₹10 lakh for persistent breaches.

Minor procedural lapses in licence compliance will be dealt with through an administrative fine structure: a civil penalty of up to ₹2.5 crore for the first breach, and up to ₹5 crore for a subsequent breach, alongside potential licence suspension or cancellation by the appointed officer.

Stakeholders have until 30 October 2026 to submit observations, after which the Bill will be refined.