Vedanta Cairn Oil & Gas bats for import parity pricing on crude oil

07 Mar 2022 CW Team

It also pushed for a rethink of the Enhanced Oil Recovery (EoR) policy, calling for levies to be reduced from 70% to 40%.

Domestic crude sales to refineries are subject to central sales tax and Value- added tax (VAT), whereas imported crude is not. Domestic crude will be 3% more expensive as a result of this. This additional cost can not be passed on to customers because import parity is not in place. This cost is currently being borne by domestic producers, and it is being added to the cost of sales. The central sales tax (CST) Act was amended in February 2021 by the Union Budget, which removed the benefit of a 2% CST concession against the C-form. The production cost rises as a result.

When asked about the government sops that the company needs to increase production, he asked for a rethink of the EoR and improved oil recovery (IOR) policies. This is because pre-New Exploration Licensing Policy (NELP) blocks are expected to provide the majority of incremental production in the short term. Changes to the shale policy were also suggested by the company to make the industry more viable.

This year, the company plans to begin its shale pilot project, with a potential resource base of around 3 billion barrels. In the case of shale, the industry demanded a 10% increase in profit petroleum, in addition to the percentage of profit petroleum shared with the government under current production-sharing contracts. There were also calls for the Centre's profit petroleum share on unconventional blocks to be capped at 20%.

Also read: Vedanta Aluminium business to focus on backward integration in 2023

Due to the Ukraine crisis, international crude oil prices are hovering around $100 per barrel, so Vedanta arm Cairn Oil and Gas batted for import parity pricing on crude oil to bolster domestic production. India's largest private exploration and production company is Cairn Oil and Gas. It also pushed for a rethink of the Enhanced Oil Recovery (EoR) policy, calling for levies to be reduced from 70% to 40%. Domestic crude sales to refineries are subject to central sales tax and Value- added tax (VAT), whereas imported crude is not. Domestic crude will be 3% more expensive as a result of this. This additional cost can not be passed on to customers because import parity is not in place. This cost is currently being borne by domestic producers, and it is being added to the cost of sales. The central sales tax (CST) Act was amended in February 2021 by the Union Budget, which removed the benefit of a 2% CST concession against the C-form. The production cost rises as a result. When asked about the government sops that the company needs to increase production, he asked for a rethink of the EoR and improved oil recovery (IOR) policies. This is because pre-New Exploration Licensing Policy (NELP) blocks are expected to provide the majority of incremental production in the short term. Changes to the shale policy were also suggested by the company to make the industry more viable. This year, the company plans to begin its shale pilot project, with a potential resource base of around 3 billion barrels. In the case of shale, the industry demanded a 10% increase in profit petroleum, in addition to the percentage of profit petroleum shared with the government under current production-sharing contracts. There were also calls for the Centre's profit petroleum share on unconventional blocks to be capped at 20%. Image Source Also read: Vedanta Aluminium business to focus on backward integration in 2023

Infrastructure Urban

23 May 2025

CRCL, IIT Delhi Sign MoU to Boost Science and Ease of Business

The Central Revenues Control Laboratory (CRCL), Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, and the Indian Institute of Technology (IIT) Delhi signed a Memorandum of Understanding (MoU) toward trade facilitation and improving the ease of doing business. This MoU collaboration aims to foster R&D, innovation, and scientific excellence at CRCL, bolstering trade facilitation and regulatory efficiency.The MoU was signed by Prof. Rangan Banerjee, Director, IIT Delhi, and Shri V. Suresh, Director, CRCL, in presence of Shri Surjit Bhujabal, Speci..

Infrastructure Urban

23 May 2025

CAQM Sub-Committee Activates 27-Point Plan to Improve NCR Air Quality

The daily average AQI of Delhi has been hovering marginally above 200 threshold with forecast of slight improvement since last two days. Today, Delhi鈥檚 daily average Air Quality Index (AQI) clocked 213 (鈥楶oor鈥� category), as per the daily AQI Bulletin provided by the Central Pollution Control Board (CPCB), owing to variable winds. In wake of the average/ overall air quality of Delhi recording 鈥楶oor鈥� air quality category ranging between 201-300, the CAQM Sub-Committee on GRAP met today to take stock of the current air quality scenario of Delhi-NCR. While comprehensively reviewing the a..

Infrastructure Urban

23 May 2025

DoT Launches Financial Fraud Risk Indicator to Boost Cybersecurity

In a major step towards combating cyber fraud and financial crime, the Department of Telecommunications (DoT) has announced sharing of 鈥淔inancial Fraud Risk Indicator (FRI)鈥� with stakeholders- an output from a multi- dimensional analytical tool developed as part of the Digital Intelligence Platform (DIP) to empower financial institutions with advance actionable intelligence for cyber fraud prevention. This will enhance cyber protection and validation checks in case of mobile numbers flagged with this tool when digital payment is proposed to be made to such numbers.What is the 鈥淔inancial ..