Crude oil market crash spells havoc for ONGC
NEW DELHI : State-owned ONGC has asked the government to waive payment of oil cess and royalty as plummeting international oil prices have meant that the rate it now gets does not even cover the operating cost, sources said. While the slump in international oil prices to more than two-decade low is good news for fuel consumers, it is spelling economic havoc on oil and gas producers.
Sources said Oil and Natural Gas Corp (ONGC) management has told the government its average price realization of USD 22 per barrel in April is not enough to cover even the operating cost.
On top of it, the drop in natural gas prices to a decade low of USD 2.39 per million British thermal unit is leading to a loss of about ₹6,000 crore annually.
