{"id":29164,"date":"2018-10-24T17:25:27","date_gmt":"2018-10-24T11:55:27","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=29164"},"modified":"2018-10-24T17:25:27","modified_gmt":"2018-10-24T11:55:27","slug":"windfall-oil-tax-on-ongc-in-offing-to-soften-fuel-prices","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/windfall-oil-tax-on-ongc-in-offing-to-soften-fuel-prices\/","title":{"rendered":"Windfall oil tax on ONGC in offing to soften fuel prices"},"content":{"rendered":"

Windfall oil tax on ONGC in offing to soften fuel prices<\/strong><\/p>\n

News<\/strong><\/p>\n

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  1. The government is looking for various options to moderate the retail price of petrol and diesel.<\/li>\n<\/ol>\n

    Important Facts<\/strong><\/p>\n

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    1. The government may levy a\u00a0windfall tax\u00a0on oil producers like Oil and Natural Gas Corp. (ONGC)<\/li>\n
    2. The tax may come in the form of a Cess, will applicable when oil prices cross $70 per barrel. Oil producers, who get paid international rates for the oil they produce from domestic fields, would have to part with any revenue they earn from prices crossing $70 per barrel mark.<\/li>\n
    3. It is argued that $70 per barrel threshold for the windfall tax is sufficient to cover for capital expenditure requirement of ONGC and other oil producers.<\/li>\n
    4. The government may levy cess on all oil producers \u2014 both public and private sector \u2014 so as not to attract criticism of stifling State-owned explorers.<\/li>\n
    5. A similar tax was considered in 2008 when oil prices were on the rise but the idea was dropped after stiff opposition from private sector firms like Cairn India.<\/li>\n
    6. Windfall tax is levied in some of the developed countries globally.<\/li>\n<\/ol>\n