PNGRB’s Draft Consumer Protection Regulations, 2025:  A Compliance shift for Oil and Gas Entities

Consumers in the petroleum and natural gas sector have historically faced persistent challenges relating to quality, pricing transparency, supply reliability, and, perhaps most critically, a fragmented grievance redressal framework. While the sector has long been regulated, consumer protection standards have remained dispersed across multiple instruments, often resulting in inconsistent implementation.

However, the context in which these issues are now being examined has changed materially. Over the past few months, global energy markets have witnessed significant volatility, with sharp movements in oil and gas prices, supply chain disruptions, and heightened sensitivity around availability and service reliability. These developments have reinforced the importance of stronger, more structured consumer protection mechanisms, not just as a matter of consumer rights, but as a core element of sectoral stability and operational accountability.

It is against this backdrop that one needs to review the draft Petroleum and Natural Gas Regulatory Board (Consumer Protection) Regulations, 2025[1] (“Draft Regulations”) by the Petroleum and Natural Gas Regulatory Board (PNGRB). The Draft Regulations seek to move beyond broad consumer welfare principles and instead establish a uniform, enforceable framework governing both consumer rights and entity-level obligations across the downstream oil and gas ecosystem.

The scope of the Draft Regulations is extensive. On one hand, they impose structured obligations on a wide range of entities – including City Gas Distribution (CGD) operators, oil marketing companies (OMCs), LPG distributors, retail outlet dealers, and pipeline operators – engaged across the value chain of refining, storage, transportation, distribution, and sale. On the other hand, they codify consumer rights across segments such as PNG, CNG, LPG, and petrol and diesel retail consumers. A particularly notable feature is the introduction of a clearly defined grievance redressal architecture, with categorised complaints, prescribed turnaround timelines, escalation pathways, and compensation-linked accountability.

In this blog, we analyse how these Draft Regulations seek to rebalance the relationship between consumers and regulated entities, by translating consumer expectations into measurable compliance obligations.

Entity Type	New Core Obligation	Compliance Trigger
CGD Entities	48-hour advance notice for supply cuts	Operational Delay
OMCs/Retail	12-hour minimum daily operation	Availability Breach
LPG Distributors	24/7 Emergency Leakage SOPs	Safety Violation
All Entities	Multi-channel complaint registration	Process Failure

The key consumer rights laid down in the Draft Regulations

The Draft Regulations lay down the fundamental rights of the consumers in the petroleum and natural gas sector. It includes the right to safety, the right to information about quality, quantity, standard, price and composition, the right to choose among suppliers at competitive prices, and the right to be heard. In addition to these rights, it also proposes to recognise specific rights for different categories of consumers. For instance, a PNG consumer has the right to know the current status of their application for a new connection, including reasons for delay or non-activation. A CNG consumer has the right to view the price per kilogram displayed at all CNG stations. An LPG consumer is entitled to timely delivery of refill cylinders. Similarly, a consumer purchasing petrol or diesel from a retail outlet has the right to receive unadulterated fuel that meets the applicable BIS quality standards. Among these rights, the Draft Regulations place particular emphasis on the consumer’s right to access a uniform and structured grievance redressal mechanism.

Obligations of CGD entities, OMCs, retail outlet dealers, and LPG distributors

The Draft Regulations also propose certain general obligations for entities operating in the sector. Some of the key obligations are as follows:

1. Acknowledging receipt of applications for new PNG connections, maintaining a system for real-time status tracking, and communicating the expected activation timeline or reasons for delay;
2. Prominently displaying prices, quality certifications, calibration certificates, and other relevant consumer-facing information;
3. Establishing and maintaining a Consumer Complaint Cell with adequate infrastructure, staffing, and resources;
4. Providing multiple channels for lodging complaints, including a toll-free helpline, online portal, mobile application, email, walk-in centres, and government portals; and
5. Registering and resolving consumer complaints within the turnaround time prescribed under the Draft Regulations.

In addition to these general obligations, the Draft Regulations propose entity-specific obligations for different stakeholders in the petroleum and natural gas sector. These obligations focus on transparency, timely service delivery, consumer information, safety, and an effective complaint redressal framework.

CGD entities would soon be required to maintain supply pressure and quality as per technical standards; provide advance intimation of at least 48 hours for planned supply interruptions; conduct periodic safety inspections of consumer installations; implement QR code-based complaint registration system at all CNG stations; ensure safety at CNG stations and display safety instructions prominently, etc.

OMCs and retail outlet dealers would soon be required to maintain adequate stock of petrol, diesel and other petroleum products; remain open during specified working hours (minimum 12 hours per day or as per state regulations); display Maximum Retail Price (MRP) prominently at each dispensing unit; maintain complaint/suggestion book at retail outlet and make it readily available to customers, etc.

LPG distributors and OMCs would soon be required to operate emergency helpline on 24×7 basis for leakage complaints with appropriate standard operating procedures; facilitate booking through multiple channels including online, telephone, and mobile app; display contact numbers and addresses of Field Officers and Divisional Offices prominently; respond to service-related complaints within 14 days from date of registration, etc.

Conclusion:

The Petroleum and Natural Gas Regulatory Board (Consumer Protection) Regulations, 2025 aim at an important attempt to create a unified consumer protection architecture for India’s downstream petroleum and natural gas sector. Based on the draft published by PNGRB, the framework goes well beyond generic consumer-friendly language and moves toward enforceable service obligations, formal grievance redressal, compensation-backed accountability, and structured oversight.

If brought into force in substantially the same form, these regulations could materially change how petroleum and gas entities manage service delivery, complaints, and regulatory risk. For consumers, that would mean stronger procedural rights. For regulated entities, it would mean that weak complaint handling, slow response systems, and opaque customer processes are no longer just operational gaps they are compliance failures waiting to be measured. To stay updated on regulatory changes in India, including developments in environmental laws, companies can subscribe to Komrisk, our Compliance Management Solution. Komrisk offers a range of automated features that help enterprises identify instances of non-compliance, track obligations in an actionable format, and enhance transparency and accountability in their compliance management processes.

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[1] Draft Petroleum and Natural Gas Regulatory Board (Consumer Protection) Regulations, 2025: https://pngrb.gov.in/pdf/public-notice/20251216_Draft.pdf

Author: Sanjit Sarkar

Co-Author: Amiya Mukherjee

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