Tuesday, March 21 2006 18:25 Hrs (IST) - World Time -

New Delhi: Parliament today (Mar 21 2006) paved the way for setting up the long awaited Petroleum and Natural Gas Regulatory Board with the passage of the relevant bill.

The Petroleum and Natural Gas Regulatory Board Bill aimed at regulating refining and other processes in the sector was passed by the Lok Sabha by a voice vote.

The Rajya Sabha had passed the legislation earlier.

Winding up the discussion on the bill, Petroleum Minister Murli Deora said the Board would essentially perform three functions - protect the interest of consumers, seek to boost investments and create competitive markets.

Responding to members' concerns regarding adulteration of petroleum products, the Minister said the Board had provisions to tackle the problem.

He said adulteration was mainly for profit due to the vast price difference of kerosene under PDS. A meeting of the oil PSUs was held in Mumbai recently to look into the issue.

Deora assured the House that the government was working to address the shortfall in LPG cylinder which hit many states and the Board too would look into the issue.

"The shortfall in LPG which happened in October-December 2005 was mainly due to the shutting down of RIL refinery and the fire at Bombay High. Eforts are on to stabilise the situation," he said.

The Board would regulate refining, processing, storage, transportation and distribution of petroleum and natural gas and strive to ensure uninterrupted gas supply.

Besides, it would regulate marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil.