India’s cabinet on Wednesday approved a plan that would allow local crude producers to sell oil to private companies, a move that would help raise revenue of state-run producers such as ONGC and Oil India.
“Companies will now be free to sell crude oil from their fields in domestic market. Government revenues ... will continue to be calculated on uniform basis across all contracts,” the government said. The government currently allocates crude produced by state-run ONGC and Oil India to various refiners. The two companies charge a flat rate for their crude, irrespective of the grade.
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