The establishment of the municipality of Panukulan begun with the separation of Barangays Panukulan, Calasumanga, Libo and Lipata from its former unit the municipality of Polilio, for incorporation into the new municipality of Panukulan by virtue of the passage of Republic Act No. 2452 on June 21, 1959.
The Municipality is located at the northern tip of Polillo Island which is 26 nautical miles from Infanta Quezon. It is geographically situated at 121 48.50 longitude and 14 56 latitude. It is bounded in the North by the Philippine Sea (Pacific Ocean), on the East by the Municipality of Burdeos, Quezon, on the South by Polillo, Quezon, and on the west by Polillo Strait. Infanta, Quezon is its nearest commercial center. Its travel time by motor boat going to Infanta and vice- versa is about 1.5 hours to 2 hours, depending on the weather condition. Only single regular trip is available, which leave Municipal Port at 7:30 AM and return from Infanta at 2:00 PM. All its barangay are accessible through banca or motorboat. Only Barangay Balungay up to the boundary of Barangay Pag-itan can be reached through land transportation. However, there are also Tricycle Operator at Barangay Libo to Kinalagti, Barangay Libo to Pandan and Barangay Calasumanga is now also connected with the municipality of Polillo through Tricycle.