Follow Us:

Petroleum Sector earned huge revenue even during Covid-19 pandemic

The PPAC data reveals that the government earned Rs 1,17,348 crore more from taxes during 2020-21 (covid-19 pandemic time) than the financial year 2019-20.

Vijay Thakur | New Delhi |

Petroleum Sector continues to be a milching-cow for the Union Government even during the Covid-19 pandemic as it earned Rs 4,55,069 crore for the state exchequer when Covid-19 was at its peak and most of the other revenue sources dried up for the Centre as well as state governments.

Though the Petroleum Sector as a whole could not perform well and the production data of crude oil and natural gases were on the decline, the sector emerged as a huge tax earner for the Centre and State governments, reveals the data of the Petroleum Planning and Analysis Cell (PPAC).

The PPAC data reveals that the government earned Rs 1,17,348 crore more from taxes during 2020-21 (covid-19 pandemic time) than the financial year 2019-20. Even during the first quarter of 2021-22, when the second wave of Covid-19 was at its peak, the total tax collection from the sector was Rs 1,52,364 crore—almost half of what the government collected in the entire fiscal year of 2014-15—when Narendra Modi came into power.

On the production performance front, the Ministry Oil Sector, however, could not do well due to the Covid-19 situation. Till December this year, Oil companies produced 42.65 MTOE (Million metric tonnes of oil equivalent), 19.88 MMT (Million Metric tonnes) crude oil, and 22.77 BCM (Billion Cubic Meter) natural gas.

This year Ministry awarded a total of 105 exploration blocks covering an area of 1,56,580 sq km, while  50 discoveries have been monetized till November this year, the ministry said. According to the Ministry more than Rs 2,75,781 crore were spent on Hydrocarbon infrastructure this year, it introduced Indian Gas Exchange launched, and installed a total of 83.7 Lakh PNG (Domestic) connections and 3532 CNG stations.

But despite Covid pandemic, Petroleum Ministry kept its welfare and infrastructure development schemes rolling and exhibited a remarkable performance whether it was its ethanol and bio-diesel blending programme, or giving hassle free gas connections or reduction in regulatory compliance burden.

The Ministry released more than 80.5 lakh deposit free gas connections under Pradhan Mantri Ujjwala Yojana ( PMUY) under PMUY-II scheme launched on August 10 this year. The Government has already given 8 crore deposit free gas connections to poor women since the scheme 2016, when the first phase of the scheme was launched. In a bid to develop gas infrastructure, the government has already laid 21,735 kilometers long gas pipeline till September this year.

This year government has also expedited its ethanol blended petrol and bio-diesel blending programme. Oil Marketing companies have already procured 302.30 crore litre of ethanol till November this year, which has not only saved foreign exchange but also helped Indian ethanol industry and sugar cane farmers, claimed a senior officer of the Petroleum Ministry

On a similar pattern, the Government has also introduced Biodiesel Blending Programme so as Used cooking oil based Biodiesel blended diesel could be supplied. To further help the bio diesel sector, the government has reduced the GST from 12 per cent to 5 per cent in October this year.

Towards its commitment to reduce regulatory compliance burden, the Ministry has simplified procedures and improved ‘Ease of Doing Business’ in the Petroleum & Natural Gas sector. In the special campaign launched by the Government in the year 2021, a total number of 276 compliances were reduced and procedures simplified, the Ministry claimed.