India, Sept. 30 -- The government has proposed the Petroleum (Amendment) Bill, 2026, seeking to overhaul the penalty framework under the Petroleum Act, 1934. The draft, released by the Ministry of Petroleum and Natural Gas for public and industry consultation, proposes decriminalising minor regulatory violations while retaining stringent punishment for serious offences.

Under the proposed amendments, carrying out a petroleum-related activity requiring a licence without obtaining one could attract imprisonment of up to three years, a fine of up to Rs 25 crore, or both. A continuing violation could also attract an additional penalty of up to Rs 10 lakh per day. Fraudulently obtaining a licence through misrepresentation, impersonation or d...