The petroleum ministry has approved the proposal for increasing provisional rate of royalty on crude oil to Rs 800 per tonne from January 1.
According to an official press release issued here yesterday, the royalty amount will be subject to a limit of 20 per cent of the well-head value of crude oil.
Pending introduction of a new scheme, payment of royalty on crude oil was being made at Rs 750 per tonne on provisional basis from June 1, 1999. These ad hoc rates of royalty payment will be subject to adjustment on finalisation of new scheme of royalty, the release said.
The release said this decision will benefit the oil producing states, including Gujarat and Assam, the major oil producing states of the country.
