The Petroleum Act, 1934

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THE PETROLEUM ACT, 1934  
(XXX of 1934) 
CONTENTS 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER I 
CONTROL OVER PETROLEUM 
3. Import, transport and storage of petroleum  
4. Rules for the import, transport and storage of petroleum 
5. Production refining and blending of petroleum 
6. Receptacles of dangerous petroleum to show a warning 
7. No license needed for small stocks of non -dangerous petroleum not in 
bulk 
8. No license needed for small quantities of dangerous petroleum 
9. Exemptions for motor conveyances and stationary engines 
10. No license needed by railway administration acting as carrier 
11. Exemption of heavy oils 
12. General power of exemption 
13. Inspection of places 
CHAPTER II 
THE TESTING ON PETROLEUM 
14. Inspection and sampling of petroleum 
15. Standard Test Apparatus 
16. Certification of other test apparatus 
17. Testing officers 
18. Manner of test 
19. Manner of test 
20. Right to require re-test 
21. Power to make rules regarding tests 
22. Special rules for a testing viscous or solid forms of petroleum 
CHAPTER III 
PENALTIES AND PROCEDURE 
23. General penalty for offences under this Act 
24. Confiscation of petroleum and receptacles 
25. Jurisdiction 
26. Power of entry and search 
27. Reports of accidents with petroleum 
28. Inquiries into serious accidents with petroleum 
CHAPTER IV 
SUPPLEMENTAL 
29. Provisions relating to rules 
30. Power to apply Act to other substances 
31. Power to limit powers of local authorities over petroleum 
32. Repeals 
TEXT 
THE PETROLEUM ACT, 1934 
1
(XXX of 1934) 
[6th September, 1934] 
An 
Act 
to consolidate and amend the law relating to the import, transport, storage, 
production, refining and blending of petroleum and other inflammable substances. 
WHEREAS it is expedient to consolidate and amend the law relating to the 
import, transport, storage, production, refining and blending of petroleum and other 
inflammable substances; 
It is hereby enacted as follows:– 
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be called the 
petroleum Act, 1934. 
2
[(2) It extends to the whole of Pakistan.] 
(3) It shall come into force on such date
3
 as the Federal Government] may 
by notification in the official Gazette, appoint. 
2. Definitions.– In this Act, unless there is anything repugnant  in the subject or 
context,- 
(a) “Petroleum” means any liquid hydroc arbon or mixture of hydrocarbons 
and any inflammable mixture (liquid, viscous or solid) con taining any 
liquid hydrocarbon: 
(b) “dangerous petroleum” means petroleum having its flashing point 
below seventy-six degrees Fahrenheit; 
(c) flashing-point” of any petroleum means the lowest temperature at 
which it yields a vapor which will give a momentary flash when ignited, 
determined in accordance with the provisions of Chapter II and the 
rules made thereunder; 
4
[(d) “to transport” means to move petroleum from on e place to another 
within Pakistan, by land, sea or air, and includes moving from one 
                                                 
1For Statement of Objects and Reasons, see Gazette of India, 1933, Pt. V. p. 104; and for Report of Select Committee, see 
ibid, 1934, Pt. V, pp. 235-236 
2Subs. By the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) , S. 3 and Sec (with effect from the 14 th October, 
1965), for the original sub -section (2) as amended by A.O., 1949, and Federal Laws (Revision and Declaration) Act, 1951 (26 
of 1951), S. 8 
3The 30th March, 1937 see Gazette of India, 1937, Pt. I, 632 
4For Statement of Objects and Reasons, see Gazette of India, 1933, Pt. V. p. 104; and for Report of Select Committee, see 
ibid, 1934, Pt. V, pp. 235-236 
place to another in Pakistan across territory which is not part of 
Pakistan;] 
(e) “to import” petroleum means to bring it into Pakistan by land, sea or air, 
otherwise than during the course of transport! 
(f) “to store” petroleum means to keep it in any one place, but does not 
include any detention happening during th e ordinary course of 
transport; 
(g) “motor conveyance” means any vehicle, vessel or aircraft for the 
conveyance of human beings, animals or goods, by land, water or air, 
in which petroleum is used to generate the motive power; 
(h) “prescribed” means prescribed by rules made under this Act. 
CHAPTER I 
CONTROL OVER PETROLEUM 
3. Import, transport and storage of petroleum .– (1) No one shall import, 
transport or store any petroleum save in accordance w ith rules made under section 
4. 
(2) Save in accordance with the conditions of any license for the purpose 
which he may be required to obtain by rules made under section 4, no one shall 
import any dangerous petroleum, and no one shall transport or store any petroleum. 
4. Rules for the import, transport and storage of petroleum .–  The Federal 
Government may make rules. 
(a) prescribing places where petroleum may be imported and pr ohibiting 
its import elsewhere; 
(b) regulating the import of petroleum elsewhere; 
(c) prescribing the p eriods within which licenses for the import of 
dangerous petroleum shall be applied for, and providing for the 
disposal, by confiscation or otherwise, of any dangerous petroleum in 
respect of which a license has not been applied for within the 
prescribed p eriod or has been refused a nd which has not been 
exported; 
(d) regulating the transport of petroleum; 
(e) specifying the nature and condition of all receptacles and pipelines in 
which petroleum may be transported; 
(f) regulating the places at which and pre scribing the conditions subject to 
which petroleum may be stored; 
(g) specifying the nature, situation and condition of all receptacles in  which 
petroleum may be stored; 
(h) prescribing the form and conditions of license for the import of 
dangerous petrole um, and for the transport or storage of any 
petroleum, the manner in which applications for such license shall be 
made, the authorities which may grant such license and the fees which 
may be charged for such license; 
(i) determining in any class of cases w hether a licenses for the transport 
of petroleum shall be obtained by the consignor, consignee or carrier; 
(j) providing for the grant of combined license for the import, transport and 
storage of petroleum, or for any two of such purposes; 
(k) prescribing the proportion in which any specific poisonous substance 
may be added to  petroleum, and prohibiting the import, transport or 
storage of petroleum in which the proportion of any specified poisonous 
substance exceeds the prescribed proportion; and 
(l) generally, providing for any matter which in its opinion is expedient for 
proper control over the import, transport and storage of petroleum.
5
 
5. Production refining and blending of petrol eum.–  (1) No one shall 
produce, refine or blend petroleum save in accordance with the ru les made under 
sub-section (2). 
(2) The Federal Government may make rules.
6
 
(a) prescribing the conditions subject to which petroleum may be 
produced, refined or blended; and 
(b) regulating the removal of petroleum from places where it is produced, 
refined or blended and preventing the storage therein and removal 
therefrom, except as dangerous petroleum, of any petroleum which has 
not satisfied the prescribed tests.  
7
[(3) * * * * * * * * * * *   ] 
6. Receptacles of dangerous petroleum to show a warning.–  All receptacles 
containing dangerous petroleum shall have a stamped, embossed, painted or printed 
warning, either .on the receptacle itself or, where that is impracticable, displayed 
near the receptacle, exhibiting in conspicuous characters the words “petrol” or “Motor 
Spirit”, or an equivalent warning of the dangerous nature of the petroleum:– 
Provided that this section shall not apply to:– 
(a) any securely stoppered glass, stoneware or metal receptacle of less 
than two gallons capacity containing dangerous petr oleum which is not 
for sale, or 
(b) a tank incorporated in a” motor conveyance, or atta ched to an internal 
combustion engine, and containing petroleum intended to be used to 
generate motive power for the motor conveyance or engine, or 
(c) a pipe line for the transport of petroleum, or 
(d) any tank which is wholly underground, or 
                                                 
5LAW NOTES  1969 SC 25, see also 1970 S.C.M.R. 64 which contains the report of Civil Petition for Special Le ave to Appeal 
No. 265 of 1967 granted by Supreme Court on 6th October, 1967. 
6See the Petroleum Rules, 1937, published in the Gazette of India, 1937, Pt. I, pp. 720 to 775; and for the Mineral Gas Safety  
Rules; 1960 see Gaz. of P., 1961, Pt. I, pp. 120-28. 
7Subs-section (3) omitted by A.O., 1937. 
(e) any clas s of receptacles which the Federal Government may, by 
notification
8
 in the official  Gazette, exempt from the operation of this 
section. 
7. No license needed for small stocks of non -dangerous petroleum not in 
bulk.– Notwithstanding anything contained in this Chapter, a person need not obtain 
a license for the transport or storage of non -dangerous petroleum if the total quantity 
in his possession at any one place does not exceed five h undred gallons and none 
of it is contained in a receptacle exceeding two hundred gallons capacity. 
8. No license needed for small quantities of dangerous petroleum .– (1) 
Notwithstanding  anything contained in this chapter, a person need not obtain license 
for the import, transport or storage of dangerous petroleum not in ended for sale if 
the total quantity in his possession does not exceed six gallons. 
(2) Dangerous petroleum possess ed without a license under this section 
shall be kept in securely stoppered receptacles of glass, stoneware or metal which 
shall not in the case of receptacles of glass or stoneware exceed one quart in 
capacity or in the case of receptacles of metal five gallons in capacity. 
9. Exemptions for motor conveyances and stationary engines .– (1) The 
owner of a motor conveyance, who complies with requirements of the law for the 
time being in force relating to the registration and licensing of such conveyance and 
its driver or pilot and the owner of any stationary internal combustion engine, shall 
not be required to obtain a license:– 
(a) for the import, transport or storage of any petroleum co ntained in any 
fuel tank incorporated in the conveyance or attached to the  internal 
combustion engine, or 
(b) for the transport or storage of dangerous petroleum, not exceeding 
twenty gallons in quantity in addition to any quantity possessed under 
clause (a),Provided the petroleum is intended to be used to generate 
motive power for the motor conveyance or engine:
9
[Provided further 
that the total quantity of dangerous petroleum stored without a license 
under clause (b) shall not exceed twenty gallons, notwit hstanding that 
such owner may possess other motor conveyances or engines.] 
(2) The dangerous petroleum transported or stored without a license under 
clause (b) 
10
[of sub-section (1)] shall be kept as provided in sub section (2) of section 
8 and, if it excee ds six gallons in quantity, shall be stored in an isolated place which 
does not communicate with any room where any person -resides or works or in any 
room where persons assemble. 
10. No license needed by railway administration acting as carrier .– 
Notwithstanding anything contained in this Chapter, a railway administration, as 
defined in section 3 of the Railways Act, 1890. need not obtain any license for the 
import or transport of any petroleum in its possession in its capacity as carrier. 
                                                 
8For notification exempting tanks within installations or refineries at or near oil well, and receptacles in the possession of  His 
Majesty’s forces, see Gazette of India, Pt. 1. 532. 
9Proviso added by the Petroleum (Amdt) Act, 1940 (25 of 1940), S. 5. 
10Ins. Ibid. 
11. Exemption of heavy oils .– Nothing in this Chapter shall apply to any 
petroleum which has its flashing point not below two hundred degrees Fahrenheit. 
12. General power of exemption.– The Federal Government may, by notification 
in the official Gazette, exempt any petroleum specified in the notification  from all or 
any of the provisions of this Chapter. 
13. Inspection of places .– (1) The Federal Government may authorize any 
officer by name or by virtue of office to enter any place where petroleum is being 
imported, stored, produced, refined or blended, or is under transport, and inspect all 
receptacles, plant and appliances used in connection with petroleum in order to 
ascertain if they are in accordance with the provisions of this Chapter and the rules 
made thereunder. 
(2) The Federal Government may make rules regulating the procedure of 
officers authorized under this section. 
CHAPTER II  
THE TESTING ON PETROLEUM 
14. Inspection and sampling of petroleum .– (1) The Federal Government may, 
by notification 
11
in: the official Gazette, authorize any officer by name or by virtue of 
office to enter any place where petroleum is being imported, stored, produced 
refined or  blended and to inspect any take samples for testing of any petroleum 
found therein. 
(2) The Central Government may make rules:
12
 
(a) regulating the taking of samples of petroleum for testing, 
(b) determining the cases in which payment shall be made for the  value of 
samples taken, and the  mode of payment, and 
(c) generally, regulating the procedure of officers exercising powers under 
this section. 
15. Standard Test Apparatus .– (1) A s tandard apparatus for determining the 
flashing point of petroleum of petroleum shall be deposited with an officer to be 
appointed in this behalf by the Federal Government, by notifi cation in the official 
Gazette. 
(2) Such apparatus shall be engraved with t he words “Standard Test 
Apparatus” and shall be verified and corrected from time to time and replaced, when 
necessary, in accordance with rules made under section 21. 
(3) The Standard Test Apparatus shall, on payment of the prescribed fee, 
be open to inspection at all reasonable times by any person wishing to inspect it, 
16. Certification of other test apparatus .– (1) The officer appointed under 
section 15 shall, on payment of the prescribed fee, if any, compare with the Standard 
                                                 
11For instance of such authorization, see Gazette of India, 1937, Pt. I, p. 621. 
12For the Petroleum Rules, 1937, see Gazette of India, 1937, pp. 720 -775; and for the Mineral Gas Safety Rules, 1960, see 
Gaz. of Pak 
Test Apparatus any apparatus for determining the flashing point of petroleum which 
may be submitted to him for this purpose. 
(2) If any apparatus is found by him to agree with the Standard Test 
Apparatus withi n prescribed limits, the officer shall engrave such apparatus with a 
special number and with the date of the comparison, and shall give a certificate in 
respect of it in the prescribed form, certifying that on the said date the apparatus was 
compared with the Standard Test Apparatus and was found to agree with it within 
the prescribed limits and specifying any corrections to be made in the results of test 
carried out with the apparatus. 
(3) A certificate granted under this section shall be valid for su ch period as 
may be prescribed. 
(4) A certificate granted under this section shall, during the period for 
which it is valid, be proof, until the contrary is proved of any matter stated therein. 
(5) The officer shall keep a register in the prescribed form of all  certificates 
granted by him under this section. 
17. Testing officers .– The Federal Government may authorise any officer by 
name or by virtue of office to test petroleum of which sam ples have been taken 
under this Act, or which may have been submitted to him for test by any person, and 
to grant certificates of the results of such tests. 
18. Manner of test .– All tests of petroleum made under this Act shall be made 
with a test apparatus in respect of which there is a valid certificate under section 16, 
shall have due regard to any correction specified in that certificate, and shall be 
carried out in accordance with rules made under section 21. 
19. Manner of test .– (1) The testing officer after testing samples of petroleum 
shall make out a certificate in the prescribed form, stating whether the petroleum is 
dangerous or non -dangerous and, if the petroleum is non -dangerous, the f lashing-
point of the petroleum. 
(2) The testing officer shall furnish the person concerned, at his request, 
with a certified copy of the certificate, on payment of the prescribed fee, and such 
certified copy may be produced in any Court of proo f of the contents of the original 
certificate. 
(3) A certificate given under this section shall be admitted as evidence in 
any proceedings which may be taken under this Act in respect of the petroleum from 
which the samples were taken, and shall, until the  contrary is proved, be conclusive 
proof that the petroleum is dangerous or non-dangerous, or of, its flashing point. 
20. Right to require re-test.– (1) The owner of any petroleum, o r his agent, who 
is dissatisfied with the result of the test of the petroleum may, within seven days from 
the date on which he received intimation of the result of the test, apply to the officer 
empowered under section 14 to have fresh samples of the petro leum taken and 
tested. 
(2) On such application and on payment of the prescribed fee, fresh 
samples of the petroleum shall be taken in the presence of such owner or agent or 
person deputed by him, and shall be tested in the presence of such owner or agent 
or person deputed by him. 
(3) If, on such re -test, it appears that the original test was erroneous, the 
testing officer shall cancel the original certificate granted under section 19, shall 
make out a fresh certificate, and shall furnish the owner of the pe troleum, of his 
agent, with a certified copy thereof, free of charge. 
21. Power to make rules regarding tests.– The Federal Government may make 
rules: 
(a) for the specification, veri fication, correction and replacement of the 
Standard Test Apparatus; 
(b) prescribing fee for the inspection of the Standard Test Apparatus: 
(c) regulating the procedure in comparing a test apparatus with the 
Standard Test Apparatus: 
(d) Prescribing the for m of certificate to be given in respect of a test 
apparatus so compared, and the period for which such certificates shall 
be valid: 
(e) Prescribing the form of the register of such certificates; 
(f) Prescribing fees for comparing a test apparatus wi th the Standard Test 
Apparatus; 
(g) regulating the procedure of testing officers in carrying out “tests of 
petroleum, providing for the averaging of results where several 
samples of the same petroleum are tested, and prescribing the 
variations from standard temperatures which may be allowed; 
(h) prescribing the form of certificates of test of petroleum and the fees 
which may be charged therefore; 
(i) Providing, where the results of the testing of samples raise a doubt as 
to the uniformity of the quality of the pet roleum in any lot under test, for 
the division of the lot into sub -lots, selection and testing of samples of 
each sub -lot and for the averaging of results in accordance with the 
results of tests of those samples; 
(j) prescribing fees for re -tests under sec tion 30 and providing for their 
refund where the original test was erroneous; and 
(k) generally, regulating the procedure of all officers performing duties 
connected with the testing of petroleum, and providing for any matter 
incidental to such testing. 
22. Special rules for a testing viscous or solid forms of petroleum .– The 
Central Government may also make rules providing specially for the testing of any 
form of petroleum which is v iscous or solid of contains sediment or thickening 
ingredient, and such rules may modify or supplement any of the provisions of this 
Chapter or of the rules made under section 21 in order to adapt them to the special 
needs of such tests. 
CHAPTER III 
PENALTIES AND PROCEDURE 
23. General penalty for offences under this Act.– (1) Whoever– 
(a) in contravention of any of the provisions of Chapter 1 or of any of the 
rules made thereunder, imports, transports, stores produces, refi nes or 
blends any petroleum, or 
(b) contravenes any rule under made section 4 or section 5, or 
(c) being the holder of a license issued under section 4 or a person for the 
time being placed by the holder of such license in control or incharge of 
any place where petroleum is being imported or stored, or is under 
transport, contravenes any condition of such license or suffers any 
condition of such license to be contravened, or 
(d) being for the time being in control or incharge of any place where 
petroleum is being imported, stored, produced, refined or blended or is 
under transport refuses or neglects to show to any officer authorized 
under section 13 any receptacle, plant or appliance used in such place 
in connection with petroleum, or in any way obstructs or fails to render 
reasonable assistance to such officer during an inspection, or 
(e) being for the time being in control or incharge of any place where 
petroleum is being imported, transported, stored, produced, refi ned or 
blended, refuses or neglects to show to any officer authorized under 
section 14 any petroleum in such place, or to give him such assistance 
as he may require for the inspection of such petroleum, or refuses to 
allow him to take samples of the petroleum, or. 
(f) being required, under section 27, to give information of an accident 
fails to give such information as so required by that section,  shall be 
punishable with fine which may extend to five hundred rupees. 
(2) If any person have been convicted of  any offence punishable under 
sub-section (1) is again guilty of any offence punishable under that sub -section, he 
shall be punishable for every such subsequent offence with fine which may extend to 
two thousand rupees. 
24. Confiscation of petroleum and receptacles .– (1) In any case in which and 
offence under clause (a) or clause (b) or clause (c) of sub -section (1) of section 23 
has been committed, the convicting Magistrate may direct that– 
(a) the petroleum in respect of which the offence has been committed, or 
(b) where the offender is convicted of importing, transporting or storing 
petroleum exceeding the quantity he is permitted to import, transport or 
store as the case may be, th e whole of the petroleum in respect of 
which the offence was committed, Shall, together with the receptacles 
in which it is contained, be confiscated. 
(2) This power may also be exercised by the High Court in the exercise of 
its appellate or revisional powers. 
25. Jurisdiction.– Offences punishable under this Act shall be tribal, by a 
Magistrate of the first class, or by a Magistrate of the second class who has been 
specially empowered by the Central Government in this behalf. 
26. Power of entry and search .– (1) The Central Government may, by 
notification in the official Gazette, authorize any officer by name or by virtue of office 
to enter and search any place where he has reason to believe that any petroleum is 
being imported, transported, stored, produced, refined or blended otherwise than in 
accordance with the provisions of this Act and the rules made thereun der, and to 
seize, detain or remove any or all of the petroleum in respect of which in his opinion 
an offence under this Act has been committed. 
(2) The provisions of the Code of Criminal Procedure, 1898, relating to 
searches shall, so far as they are appl icable, apply to searches by officers 
authorized under this section. 
(3) The Central Government may make rules regulating the procedure of 
authorized officers in the exercise of their powers” under this section subject, 
however, to the provisions of sub section (2). 
27. Reports of accidents with petroleum .– Where any accident by explosion or 
fire, which is attended with loss of human life or serious injury to person or property, 
occurs as the result of the ignition of petroleum vapor, or occurs in or near any place 
where petroleum is kept and under circumstances making it likely that it was the 
result of such ignition, the person for the time being in charge of the petroleum shall 
forthwith give information to the nearest Magistrate or to the officer incharge of the 
nearest Police Station. 
28. Inquiries into serious accidents with petroleum .– (1) The inquiry 
mentioned in section 176 of the Code of Criminal Procedure, 1898, shall 
13
[unless 
section 8 of the Coroners” Act, 1871, is applicable to the circumstances] be held in 
all cases where any person has been killed by an accident which the Magistrate has 
reason to believe was the result of the ignition of petroleum or petroleum vapor. 
(2) Any Magistrate empowered to hold an inquest may also hold an inquiry 
under the said section into the cause of any accident which he has reason to believe 
was the result of the igniti on of petroleum or petroleum vapor, if such accident was 
attended by serious injury to person or property, notwithstanding that no person was 
killed thereby. 
14
[(3) * * * * * * * * * * *   ] 
(4) The result of all inquiries held in pursuance of this section  5 and of any 
inquiry held by a coroner in a case to which sub section (1) refers shall be submitted 
as soon as may be to the Central Government, the Chief Inspector of Explosive in 
Pakistan and the Provincial Government. 
CHAPTER IV 
SUPPLEMENTAL 
29. Provisions relating to rules .– (1) In making any rules under this Ac t, the 
Federal Government may:– 
(a) provide for any matter ancillary to such rules for which in its opinion 
provision is necessary to protect the public from danger arising from 
the import, transport, storage, production, refinin g or blending of 
petroleum, and 
                                                 
13Ins. by the Petroleum (Amdt.) Act, 1940 (25 of 1940), S. 3. 
14Subs-section (3) which was amended by A.O., 1937 and Act 25 of 1940, section 3, has been omitted by A.O., 1949. 
(b) make special provision for the special circumstances of any province or 
place. 
(2) Every power to make rules con ferred by this Act is subject to the 
condition of previous publication. 
(3) All rules made under this Act shall be published in the official Gazette. 
30. Power to apply Act to other substances.– (1) The Federal Government 
may, be notification in the official Gazette, apply any or all of the provisions of this 
Act, and of the rules made thereunder with such modifications as it may specify, to 
any dangerously inflammable substance other  than an explosive, and thereupon the 
provisions so applied shall have effect as if, such substance had been included in 
the definition of petroleum. 
(2) The Central Government may make rules providing specially for the 
testing of any substance to which an y of the provisions of this Act have been applied 
by notification under sub -section (1), and such rules may supplement any of the 
provisions of Chapter II in order to adapt them to the special needs of such tests. 
31. Power to limit powers of local authorities over petroleum .– Where any 
enactment confers powers upon any local authority in respect of the transport or 
storage of petroleum, the Central Government may, by notification in the Official 
Gazette,– 
(a) limit the operation of such enactment, or 
(b) restrict the exercise of such powers, in any manner it deems fit.  
32. Repeals.– Rep, by the Repealing Act, 1939 (1 of 1939), S. 2 and Sch.