NewsGate Press Network

The Union Cabinet took a far reaching decision on Wednesday the 29th of June by deciding to ‘Deregulate of Sale of Domestically Produced Crude Oil’.

This effectively means that government has decided to give marketing freedom to domestic crude oil producers by allowing them to sell oil to whosoever they want within the country.

Briefing reporters soon after the Cabinet, the minister of Information and Broadcasting, Anurag Thakur said beginning from October 1 onwards Indian oil producers will be free to sell petrol and diesel from their fields in the domestic market anywhere they wish so.

Government revenues like royalty, cess, etc. will continue to be calculated on uniform basis across all Contracts and as earlier, exports will not be permissible.

In a statement issued by the government on the cabinet decision stated this “ will further spur economic activities, incentivize making investments in upstream oil and gas sector and builds on a series of targeted transformative reforms rolled out since 2014.”

“The policies relating to production, infrastructure and marketing of oil and gas have been made more transparent with a focus on ease of doing business and facilitating more operational flexibility to operators/industry”, the statement added.