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OIL & GAS
 
Vol. VIII Issue. 46
ONGC wants Centre to offset additional cess on crude

01 May 2012

April 26, 2012. Oil and Natural Gas Corp (ONGC), said that it has appealed the government to offset the additional cess on crude. Crude petroleum produced in India attracts a cess of ' 2,500 per tonne under the Oil Industries Development Act. As a measure of indexation, the Finance Ministry has proposed to increase the rate of cess to ' 4,500 per tonne in the Union Budget 2012-13, which impacts companies such as ONGC, and Oil India Ltd. This rate was last revised in Budget 2006-07. The subsidy burden on ONGC in first nine months of FY 2011-12 stood at ' 32,690 crore, compared to over ' 24,890 crore in FY 2010-11. The Ministry of Oil and Petroleum has taken up the issue with the Union Finance Ministry.

      
 
 
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