The Act defines petroleum product as: (a) petrol; or (b) the fuel designed for use in a compression-ignition engine, commonly known as diesel fuel or any derivatives or substitutes thereof; or (c) any refined petroleum capable of being used as a motor spirit; or (d) illuminating paraffin; or (e) aviation fuel; or (f) power paraffin; or (g) liquid petroleum gas; or (h) lubricants that are procured, sold or produced as by-products of any of the foregoing;The Act under Part II provides for the establishment and functions of the Petroleum Regulatory Authority. Part VI concerns licensing; no person other than a petroleum company licensed under this Part shall procure, sell or produce any petroleum product; who contravenes shall be guilty of an offence and liable to a fine. A licence could be: procurement license, production licence, wholesale and retailing licence. The part continues providing for duties, restrictions on transfer, procedure for application, return, amendment, cancellation, etc. Part VII establishes a fund to be known as the Fuel Price Stabilisation Fund, whose management and control shall be vested in the Minister as trustee of the Fund. The object of the Fund shall be to stabilise the price at which fuel is sold to consumers by paying out such (a) bounties or subsidies for the local production of fuel; and (b) contributions towards any scheme approved by the Minister for the direct stabilisation of the prices of fuel; as the Minister shall think proper having regard to the financial position of the Fund and the other circumstances of the case.
Additionally the Act under Part VIII lays down standards for consumer protection; the Authority shall require every licensee to develop and submit to the Authority, for its review customer service standards and customer complaint handling standards. The Authority also may develop model consumer protection standards wand shall fix safety, health and environmental standards which the licensee must follow when carrying out business in the petroleum industry.