The various embodiments herein disclose a system and a method for regulating a flow of fluid stream in fluid storage and dispensing systems. The system comprising a valve arrangement including a compressed air unit bloated by a connecting air inlet tube, a frame and a valve elevating means to mount the valve arrangement on the frame, several sensors to detect one crisis factor, a communication unit, a data logger and processing unit, a remote management system and several actuators to regulate the operation of the valve arrangement. The valve arrangement shuts down the outflow of fluid stream on receiving a valve shutdown signal from one of the sensors and data processing unit in case of a crisis detection. The data processing unit informs the remote management system to take adequate safety measures through the communication unit.