ONGC, OIL not expecting year-end windfall with recovery in crude oil prices

Price movement nudges governments to scale back tax hikes

The global crude oil price recovered from the lows of 2020 this month, but is still not enough to give a much-needed windfall to oil exploration and production companies. The price also remains soft enough to allow the central and state governments to comfortably continue raking in excise and value-added tax revenues.

However, this situation may not persist if crude oil prices move up by another $5 or so and petroleum product prices also move in tandem.

Currently, Brent crude oil prices are trading at $56.01 a barrel, up from $51 a barrel on January 4 (opening day of trade),