The federal government is just not seeking to impose any new tax on windfall features that oil and gasoline producers earned from taking pictures vitality costs, India’s high producer ONGC mentioned Monday.
Oil and Pure Gasoline Company (ONGC) and Oil India Ltd (OIL) reported bumper earnings within the March quarter (when worldwide costs soared to a close to 14-year excessive of $139 per barrel) and document earnings in 2021-22, triggering talks of the federal government slapping a windfall tax.
“Now we have not obtained any communication on this,” ONGC chairman and managing director Alka Mittal instructed a information convention right here.
Final week, Oil India Ltd (OIL) Chairman SC Mishra said the identical.
“The federal government has been conveying to us to go aggressively on (oil and gasoline) exploration and manufacturing spending in order to reinforce home output and minimize import reliance,” Mittal mentioned.
Whereas the federal government earns 65-66 paise in taxes on each rupee that ONGC earns, the remaining is plowed again into discovering extra oil and gasoline. The absence of funding in exploration as a consequence of low oil costs prior to now few years has been one large purpose for international oil and gasoline manufacturing not retaining tempo with demand globally.
The explorer had, nonetheless, not minimize exploration and manufacturing spending even when oil costs have been low, serving to discover and convey newer finds on to manufacturing to offset the pure decline that has set in previous and mature fields.
“I do not suppose they (authorities) might be speaking about this (windfall tax),” Mittal mentioned.
In latest days, the UK levied a 25 per cent tax on “extraordinary” earnings from North Sea oil and gasoline manufacturing to boost $6.3 billion to assist fund its assist bundle.
The Indian authorities minimize excise obligation on petrol and diesel to ease inflationary strain. This transfer value the federal government Rs 1 lakh crore and discuss of a windfall tax is to cowl this deficit.
Mittal mentioned ONGC is spending Rs 30,000-32,000 crore yearly to take care of output from ageing fields and discover new reserves.
With out this spending, the output will fall and India’s 85 per cent import reliance will improve.
She mentioned ONGC will spend Rs 31,000 crore over the subsequent 3 years simply on exploration. It’s implementing 6 initiatives at a price of Rs 5,740 crore.
ONGC reported a document internet revenue of Rs 40,306 crore on a income of Rs 1,10,345 crore within the 2021-22 fiscal.
OIL posted Rs 3,887.31 crore internet revenue within the fiscal.