In a significant move, the Union Cabinet on Wednesday (29 June) approved the deregulation of the sale of domestically produced crude oil in a bid to boost government’s revenues.
The move is aimed at ensuring marketing freedom for all Exploration and Production (E&P) companies as they will now be free to sell oil from their fields in domestic market.
However, the companies will not be able to export the domestically produced oil to other countries.
Whatever domestic refineries produce they will be allowed to sell to both government and private units, Union Minister Anurag Thakur said in a press briefing after the Cabinet meet.
The minister said that the decision will help reduce dependency on oil imports and will also lead to marketing and pricing reforms in sector.
“The cabinet has approved deregulation of the sale of domestically produced crude oil. It’ll be implemented from October 2022. Now companies can sell their crude oil to any private company in the domestic market along with govt companies,” Thakur said, reports ANI.