Commodities Buzz: Cabinet Committee on Economic Affairs Approves Deregulation Of Sale of Domestically Produced Crude Oil

29 Jun 2022 , 05:03 PM

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved Deregulation of Sale of Domestically Produced Crude Oil, whereby Government has decided to cease allocation of crude oil and condensate w.e.f. 01.10.2022. This will ensure marketing freedom for all Exploration and Production (E&P) operators. The condition in the Production Sharing Contracts (PSCs) to sell crude oil to Government or its Nominee or Government Companies shall accordingly be waived off. All E&P companies will now be free to sell crude oil from their fields in domestic market. Government revenues like Royalty, cess, etc. will continue to be calculated on uniform basis across all Contracts. As earlier, exports will not be permissible.Powered by Commodity Insights