India’s top oil and gas producer Oil and Natural Gas Corporation (ONGC) wants the government to scrap the windfall profit tax levied on domestically produced crude oil and instead use the dividend route to tap into bumper earnings resulting from a surge in global energy prices.
The PSU also favours a floor price for natural gas at $10 per million British thermal unit — the current government-dictated rate — to help bring deposits in challenging areas to production, two sources aware of the matter said.
The ONGC management during discussions with government officials stated that levying windfall profit tax on domestic oil producers, while at the same time reaping rich savings from buying discounted oil from Russia was unfair.
