The Downstream Petroleum Sector Regulatory Board Bill provides the regulator with wide-ranging powers to fix the ceiling selling price for motor spirit (MS) and high-speed diesel (HSD) and regulate and monitor access to the common carrier systems.
The Bill -- finalised by the petroleum ministry earlier this month and vetted by the law ministry -- empowers the regulatory board to put a cap on the retail prices of MS and HSD in order "to prevent price profiteering, avoid abnormal fluctuation in prices and promote competitive markets."
The Bill -- expected to be converted into an Act before April 1, 2002 when the administered pricing mechanism (APM) in the oil sector will stand dismantled -- empowers the board to regulate and monitor access to the common carrier systems, lay down guidelines for the determination of transportation tariffs for existing and new common carrier pipelines, including natural gas pipelines and associated facilities, fix usage charges of hydrant systems and distribution charges of natural gas.
It clarifies that any agreement pertaining to the usage of common carrier systems prior to the commencement of the Act will continue to subsist as first priority till the date of expiration of the original period of agreement.
The board will also have powers to grant, renew, suspend and cancel authorisation for laying and operating common carrier systems and associated facilities, including capacity expansion of existing pipelines.
Moreover, it will ensure that liquefied natural gas terminals are located in accordance with the policy of the central government.
The regulatory board -- whose head office will be in New Delhi and will consist of a chairperson and four members to be appointed by the central government -- will facilitate the smooth exchange of petroleum products and hospitality arrangements in case of disruption of supplies.
Any person aggrieved by any decision of the board can file an appeal to the high court within 30 days from the date of communication of the decision to him.
The high court, however, will have powers to extend the period of filing the appeal "within a further period not exceeding 60 days."
In case someone wilfully fails to comply with any decision, direction or high court order, he will be liable to a penalty imposed by the high court which may extend to Rs 5 crore. The amount thus received by the board will be credited to the Consolidated Fund of India.
The Bill empowers the central government to intervene whenever the board fails in any matter of policy relating to the downstream petroleum sector. "The central government's decision on whether a question is one of policy or not shall be final," the Bill emphasises.
