Oil, gas giants may get tax sop as govt works on lifeline
NEW DELHI: The government is stitching together a package of measures to help domestic oil producers pull through the price crash and the uncertainty in the global oil market as heavy losses on each barrel they pump threaten the commercial viability of projects.
“The pandemic and lockdowns (around the world) have created very challenging times for the exploration and production sector. The disruptive impact of the pandemic and developments in the global oil market will continue for some time. So, we have suggested some measures for the finance ministry’s consideration so that companies such as ONGC and other stakeholders can stay in business,” oil minister Dharmendra Pradhan told TOI.
“Lockdowns erased major demand. Before that, three big global producers — Saudi Arabia, Russia and the US — were locked in a competition for market share and producing more. This resulted in a glut. Commodity has become cheap but there is no demand. Now price is slowly rising as demand revives in India and elsewhere. We are working in a changed scenario. No one knows where prices will stabilise,” he said, explaining the need for relief to producers.
