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During 19th century, use of petroleum was limited. Since petroleum is dangerous, India needed legislations for regulating petroleum. Finally Indian Petroleum Act, 1899 was passed. With the rapid developments in the use of petroleum that took place in subsequent years it became unsuitable in several ways. As early as 1903, the attention of the Government of India was drawn to the inconvenience arising from the existence in different provinces of separate sets of rules to regulate the importation, possession and transport of petroleum. In 1925-26 Local Governments and the interests concerned were consulted on the subject of revising the Indian Petroleum Act, 1899 and it was agreed by all the Local Governments that the rule-making power should be transferred to central Government.

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