Covid-19: Oil producers knock govt's door, seek relaxation in royalty, cess

Domestic oil and gas operators have approached the government seeking a reduction and deferment of royalty, cess and profit petroleum paid by companies to the government, with the Covid-19 pandemic hitting demand and pushing international crude prices to new lows.
 

In addition, companies batted for a higher gas price compared to the existing $2.39 a million British thermal unit (mBtu), effective from April to September this year.
 

In a letter to the finance ministry, the Association of Oil and Gas Operators (AOGO) said oil and gas operations are now unviable owing to the higher share of government taxes.
 

The industry