3. Import, transport and storage of petroleum.—(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 3
[petroleum Class A], and no one shall transport
transport or store any petroleum.
4. Rules for the import, transport and storage of petroleum.—The 4
[Central Government] may
makes 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 5
[petroleum Class A] shall be
applied for, and providing for the disposal, by confiscation or otherwise, of any 5
[petroleum 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;
(d) regulating the transport of petroleum;
(e) specifying the nature and condition of all receptacles and pipe-lines 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 5
[petroleum Class A], and for
the transport or storages of any petroleum, the manner in which applications for such licences shall be
1. Subs. by Act 62 of 1956, s. 2 and the Schedule for “the territories to which this Act extends” (w.e.f. 1-11-1956).
2. Clause (i) omitted by Act 3 of 1951, s. 3 and the Schedule. Earlier inserted by the A.O. 1950.
3. Subs. by Act 24 of 1970, s. 4, for “any dangerous petroleum” (w.e.f. 1-8-1976).
4. Subs. by the A.O. 1937, for “Governor-General-in-Council”.
5. Subs. by Act 24 of 1970, s. 5, for “dangerous petroleum” (w.e.f. 1-8-1976).
5
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 1
[its] opinion is expedient for proper control over
the import, transport and storage of petroleum 2
[including the charging of fees for any services
rendered in connection with the import, transport and storage of petroleum].
5. Production, refining and blending of petroleum.— (1) No one shall produce, refine or blend
petroleum save in accordance with the rules made under sub-section (2).
(2) The 3
[Central Government] may makes 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 4
[petroleum Class A], of any
petroleum, which has not satisfied the prescribed tests.
5
* * * * *
6. Receptacles of petroleum Class A to show a warning.—All receptacles containing 6
[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 7
[ten litres] capacity
containing 6
[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
1. Subs. by the A.O. 1937, for “his”.
2. Ins. by Act 24 of 1970, s. 5 (w.e.f. 1-8-1976).
3. Subs. by the A.O. 1937, for “Governor-General-in-Council”.
4. Subs. by Act 24 of 1970, s. 6, for “dangerous petroleum” (w.e.f. 1-8-1976).
5. Sub-section (3) omitted by the A.O. 1937.
6. Subs. by Act 24 of 1970, s. 7, for “dangerous petroleum” (w.e.f. 1-8-1976).
7. Subs. by s. 7, ibid., for “two gallons” (w.e.f. 1-8-1976).
6
(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.
1
[7. No licence needed for transport or 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 4.
8. No licence needed for import, transport or storage of small quantities of petroleum Class
A.—(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 liter in capacity or, in the case of receptacles of metal exceed twenty-five litres in
capacity.]
9. Exemptions for motor conveyances and stationary engines.—(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 licence—
(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 2
[petroleum Class A], not exceeding 3
[one hundred litres] in
quantity in addition to any quantity possessed under clause (a),
provided the petroleum is intended to be used to generate motive power for motor conveyance or engine:
4
[Provided further that the total quantity of 2
[petroleum Class A] which may be stored without a
licence under clause (b) shall not exceed 3
[one hundred litres], notwithstanding that such owner may
possess other motor conveyances or engines.]
(2)
2
[Petroleum Class A] transported or stored without a licence under clause (b) 4
[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.
1. Subs. by Act 24 of 1970, s. 8, for sections 7 and 8 (w.e.f. 1-8-1976).
2. Subs. by s. 9, ibid., for “dangerous petroleum” (w.e.f. 1-8-1976).
3. Subs. by s. 9, ibid., for “twenty gallons” (w.e.f. 1-8-1976).
4. Ins. by Act 25 of 1940, s. 2
5. Subs. by Act 24 of 1970, s. 9, for “six gallons” (w.e.f. 1-8-1976).
7
10. No licence needed by railway administration acting as carrier.—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.
1
[11. Exemption of heavy oils.—Nothing in this Chapter shall apply to any petroleum which has its
flash-point not below ninety-three degrees Centigrade.]
12. General power of exemption.—The 2
[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.
13. Inspection of places.— (1) The 2
[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 used in connection with
petroleum in order to ascertain if they are in accordance with the provisions of this Chapter and the rules
made thereunder.
(2) The 2
[Central Government] may make rules regulating the procedure of officers authorised under
this section.