The Ministry of Petroleum and Natural Gas (MoPNG) is a ministry of the Government of India responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, and other liquid fuels. Its core mandate is to ensure the country's energy security by providing sustainable, affordable, and reliable energy. The ministry was first formed in 1963, initially under the Ministry of Natural Resources and Scientific Research. After a merger in 1966, it was bifurcated and re-established as a separate entity in 1972 to manage the rapidly growing and critical petroleum sector.
The MoPNG works by formulating policies, granting licenses and leases for exploration, and regulating the prices of petroleum products and natural gas. It administers key legislation, including the Oilfields (Regulation and Development) Act, 1948. The ministry is central to India's energy policy, connecting to major Public Sector Undertakings (PSUs) such as Oil and Natural Gas Corporation (ONGC), Indian Oil, and GAIL. It also implements social schemes like the Pradhan Mantri Ujjwala Yojana, launched in 2016 to provide LPG connections, and the PAHAL/DBTL scheme for direct LPG subsidy transfer.
Recently, the regulatory framework has seen significant changes to promote ease of doing business. The Petroleum and Natural Gas Rules, 2025, issued under the Oilfields (Regulation and Development) Amendment Act, 2025, replaced the earlier system of multiple licenses with a single petroleum lease covering all hydrocarbons, including shale. This new framework offers lease tenures of up to 30 years. Furthermore, the Oilfields (Regulation and Development) Act, 1948 was amended on June 04, 2026, to revise royalty rates for crude oil across different fields, effective from May 11, 2026, aiming to rationalize the royalty structure. The ministry also promotes cleaner energy through the National Policy on Biofuels (2018) and the implementation of BS-VI fuel standards.