Protect Landowners: Retain the existing protection U/Rule 150(1) Petroleum Rules, 2002
Protect Landowners: Retain the existing protection U/Rule 150(1) Petroleum Rules, 2002
The Issue
In the original Petroleum Rules, 2002, Rule 150(1) clearly states that an NOC is liable to be cancelled if the licensee has ceased to have any right to use the site for storing petroleum. In the new Draft Petroleum (Amendment) Rules, 2026, the proposed Rule 150(1) creates an internal inconsistency by removing this critical phrase entirely. The proposed amendment has serious consequences for land owners whose properties are used for petroleum retail outlets.
At the same time Rule 152(1)(i) , which deals with cancellation of the petroleum license, continues to recognise the expiry or termination of the licensee’s right to use the site. This creates a serious regulatory gap. A petroleum license may therefore be cancelled when the underlying right to use the land comes to an end while the NOC issued by the local authority may continue to remain in force unless one of its specific conditions is violated.
A petroleum outlet operates on a specific piece of land. When the contractual or legal right to use the land comes to an end, the continued existence of an NOC relating to that site can create unnecessary legal and administrative complications for private landowners. This can make it significantly difficult to obtain effective administrative relief and may force them into prolonged civil litigation to recover the possession of their property.
The proposed transfer of NOC functions to the District Fire Officer also requires reconsideration. Fire authorities are appropriately placed to assess fire, safety and emergency preparedness but questions concerning title, lease validity and the lawful right to use land are fundamentally matters of property and revenue administration. Hence, it is urged to ensure that questions relating to the lawful right to use the land continue to receive consideration by the competent District Authority. While the district Fire Officer remains responsible for specialised fire safety assessment.
We respectfully urge, the Ministry of Petroleum and Natural Gas to retain the existing protection under Rule 150 (1) relating to the licensee’s right to use the site, specifically the principle that an NOC is liable to be cancelled if the licensee has ceased to have any right to use the site for storing petroleum.
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The Issue
In the original Petroleum Rules, 2002, Rule 150(1) clearly states that an NOC is liable to be cancelled if the licensee has ceased to have any right to use the site for storing petroleum. In the new Draft Petroleum (Amendment) Rules, 2026, the proposed Rule 150(1) creates an internal inconsistency by removing this critical phrase entirely. The proposed amendment has serious consequences for land owners whose properties are used for petroleum retail outlets.
At the same time Rule 152(1)(i) , which deals with cancellation of the petroleum license, continues to recognise the expiry or termination of the licensee’s right to use the site. This creates a serious regulatory gap. A petroleum license may therefore be cancelled when the underlying right to use the land comes to an end while the NOC issued by the local authority may continue to remain in force unless one of its specific conditions is violated.
A petroleum outlet operates on a specific piece of land. When the contractual or legal right to use the land comes to an end, the continued existence of an NOC relating to that site can create unnecessary legal and administrative complications for private landowners. This can make it significantly difficult to obtain effective administrative relief and may force them into prolonged civil litigation to recover the possession of their property.
The proposed transfer of NOC functions to the District Fire Officer also requires reconsideration. Fire authorities are appropriately placed to assess fire, safety and emergency preparedness but questions concerning title, lease validity and the lawful right to use land are fundamentally matters of property and revenue administration. Hence, it is urged to ensure that questions relating to the lawful right to use the land continue to receive consideration by the competent District Authority. While the district Fire Officer remains responsible for specialised fire safety assessment.
We respectfully urge, the Ministry of Petroleum and Natural Gas to retain the existing protection under Rule 150 (1) relating to the licensee’s right to use the site, specifically the principle that an NOC is liable to be cancelled if the licensee has ceased to have any right to use the site for storing petroleum.
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Petition created on 10 September 2026