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%.

Image Source

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

21 Apr 2025

Arya Omnitalk Powers India’s Toll Revolution with AI-Driven Solutions

Arya Omnitalk, a leader in intelligent transportation systems, is revolutionising toll collection across India’s national highways with its advanced AI-powered Toll Management Solutions. Designed for rugged remote toll locations, the company’s cutting-edge technology ensures seamless, reliable, and secure tolling—especially during high-capacity operations exceeding 200%. By integrating real-time analytics, cyber protection, and FASTag-based cashless tolling, Arya Omnitalk’s systems are significantly reducing congestion, improving transparency, and enhancing revenue assurance. Its full..

Infrastructure Urban

21 Apr 2025

Over 800 Join Anant Raj Runathon to Mark Earth Day

Over 800 participants came together at Anant Raj Estate, Sector 63A, Gurugram, for the Anant Raj Runathon 2025—a vibrant celebration of Earth Day through fitness, community bonding, and sustainability. Curated by renowned running coach Ravinder, the event featured four categories: 10-mile and 5-mile timed runs, a 5-mile walkathon, and a 1-mile kids’ run. Runners of all ages took to the green, scenic roads of the area—some chasing personal bests, others running for a cause. The Runathon was designed to promote healthy living while raising awareness about sustainable practices. Participa..

Infrastructure Urban

21 Apr 2025

PETRONAS Lubricants, Quaker Houghton Ink Strategic Deal

In a significant step towards strengthening industrial operations in India and Malaysia, PETRONAS Lubricants India Pvt. Ltd (PLIPL) and Quaker Houghton have announced a strategic partnership aimed at delivering high-performance industrial fluid solutions to key manufacturing sectors, including steel production. The collaboration combines the strengths of both companies—leveraging PETRONAS Lubricants India’s maintenance lubricant technologies and Quaker Houghton’s deep expertise in metalworking fluids. Starting from the second quarter of 2025, Quaker Houghton will begin offering PETRONAS..

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

Arya Omnitalk Powers India’s Toll Revolution with AI-Driven Solutions

Over 800 Join Anant Raj Runathon to Mark Earth Day

PETRONAS Lubricants, Quaker Houghton Ink Strategic Deal

Latest Updates

Advertisement

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address