The natural monopoly feature of the oil and gas network industry has led to market failure in this industry. This article is done in an analytical-descriptive way and the main research question is what are the main challenges in the non-implementation of the sector regulatory body in the oil and gas industry and what solutions can be offered to solve these challenges? While identifying the harms and challenges in the transfer of regulatory duties from the National Oil Company to the sector regulatory body, finally, the solution was explained in restructuring and moving away from the regulatory government towards regulatory governance. The authority to clarify regulations of the Ministry of Oil without considering other administrative issues is mentioned in the subject law and needs to be amended. Therefore, there is a need to comprehensively explain a council with special powers and define the authority of the Ministry of Oil in explaining the economic policies of the oil industry. The division of authority between the Ministry of Oil and the National Iranian Oil Company is also necessary, and in the executive aspect, it is necessary for the government, while submitting a bill to amend Article 44 of the Constitution, to remove the private companies with the aim of reducing its involvement in economic policy-making.