A regulator for the downstream oil and gas sector is expected to be in place by the end of November.
Sources in the Ministry of Petroleum and Natural Gas said the government had invited applications for the regulator's post and the selection process would be complete by the third week of November. The regulatory board would start functioning by the end of November or early December.
The Petroleum and Natural Gas Regulatory Bill passed in the monsoon session of Parliament provides for a panel with five members. The panel will be appointed by a committee headed by Planning Commission member Dr Kirit Parikh and will have petroleum, finance, law and justice and commerce secretaries as members.
The downstream regulator will cover refining, processing, storage, transportation, distribution, marketing and sale of petroleum products, with the aim of ensuring transparency and fair play in the market and protecting the interests of consumers.
The regulatory board is expected to ensure uninterrupted and adequate supply of petroleum products and natural gas and promote competitive markets.
The idea of one regulator for upstream, midstream and downstream activities was mooted four years ago. However, the Director General of Hydrocarbons was appointed as the upstream regulator just over a month ago.
Several industry studies had also emphasised the need for a regulatory framework to ensure transparency, especially in the natural gas sector.
"The regulator should promote investment in the development of pipeline networks and early establishment of the natural gas grid. Codes for technical and safety parameters as well as inter-connectivity of pipelines are also required to be developed for systematic growth of the sector," noted a Ficci and GAIL study early this year.
