MUMBAI: The government is not imposing any new taxes on the windfall gains to oil and gas producers from India’s top producer energy prices. ONGC Said Monday.
Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) reported bumper profits in the March quarter (when international prices hit a 14-year high of $139 a barrel) and posted record earnings in 2021-22, thereby The conversation started. The government is imposing unexpected taxes.
“We have not received any information regarding this,” ONGC Chairman and Managing Director Alka Mittal said at a press conference here.
Oil India Limited (OIL) chairman SC Mishra had said the same thing last week.
“The government is asking us (oil and gas) to work aggressively on exploration and production spending to increase domestic production and cut import dependence,” Mittal said.
While the government earns 65-66 paise as tax on every rupee of ONGC, the rest is used to find oil and gas. Lack of investment in exploration due to low oil prices over the years has been a major reason for global oil and gas production not keeping pace with global demand.
However, the explorer did not cut exploration and production spending even when oil prices were low, helping to find and bring new discoveries into production to offset the established natural decline in older and mature fields.
Mittal said, “I don’t think they (government) will talk about this (windfall tax).
In recent days, the UK imposed a 25 percent tax on “extraordinary” profits from North Sea oil and gas production to raise $6.3 billion to help fund its support package.
The Government of India cut excise duty on petrol and diesel to reduce inflationary pressures. The move caused a loss of Rs 1 lakh crore to the government and there is talk of an unexpected tax to cover this deficit.
Mittal said ONGC is spending Rs 30,000-32,000 crore annually to maintain production from old fields and find new reserves.
Without this spending, production would fall and India’s import dependency of 85 percent would increase.
He said that ONGC will spend Rs 31,000 crore in the next 3 years only on exploration. It is implementing 6 projects at a cost of Rs 5,740 crore.
ONGC reported a record net profit of Rs 40,306 crore on revenue of Rs 1,10,345 crore in the financial year 2021-22.
OIL made a net profit of Rs 3,887.31 crore in the financial year.
Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) reported bumper profits in the March quarter (when international prices hit a 14-year high of $139 a barrel) and posted record earnings in 2021-22, thereby The conversation started. The government is imposing unexpected taxes.
“We have not received any information regarding this,” ONGC Chairman and Managing Director Alka Mittal said at a press conference here.
Oil India Limited (OIL) chairman SC Mishra had said the same thing last week.
“The government is asking us (oil and gas) to work aggressively on exploration and production spending to increase domestic production and cut import dependence,” Mittal said.
While the government earns 65-66 paise as tax on every rupee of ONGC, the rest is used to find oil and gas. Lack of investment in exploration due to low oil prices over the years has been a major reason for global oil and gas production not keeping pace with global demand.
However, the explorer did not cut exploration and production spending even when oil prices were low, helping to find and bring new discoveries into production to offset the established natural decline in older and mature fields.
Mittal said, “I don’t think they (government) will talk about this (windfall tax).
In recent days, the UK imposed a 25 percent tax on “extraordinary” profits from North Sea oil and gas production to raise $6.3 billion to help fund its support package.
The Government of India cut excise duty on petrol and diesel to reduce inflationary pressures. The move caused a loss of Rs 1 lakh crore to the government and there is talk of an unexpected tax to cover this deficit.
Mittal said ONGC is spending Rs 30,000-32,000 crore annually to maintain production from old fields and find new reserves.
Without this spending, production would fall and India’s import dependency of 85 percent would increase.
He said that ONGC will spend Rs 31,000 crore in the next 3 years only on exploration. It is implementing 6 projects at a cost of Rs 5,740 crore.
ONGC reported a record net profit of Rs 40,306 crore on revenue of Rs 1,10,345 crore in the financial year 2021-22.
OIL made a net profit of Rs 3,887.31 crore in the financial year.