COLLECTION OF CESS ON CRUDE PRODUCTION

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Shri Santosh Kumar Gangwar, Minister of State fir Petroleum & Natural Gas in a written reply in the Rajya Sabha, today informed that the Cess payable on crude oil has been increased from Rs. 900 per tonne to Rs. 1800 per tonne w.e.f. 1.3.2002. Government has signed 26 Production Sharing Contracts (PSCs) for the discovered fields with various consortia/companies, where Contractors' liability for Cess on crude oil is Rs. 900 per tonne only. This provision is a part of the total fiscal package/commercial terms provided under the contracts for the discovered field PSCs. The obligation to pay Cess on crude oil at the rate of Rs. 900 per tonne rests with the contractors. In reply to another question Shri Gangwar said that the Government has decided that w.e.f. 1.4.2002, the price of indigenous crude oil will be market determined. The prices paid by the oil refineries for the indigenous crude during March 2002 varied in the range of Rs. 7042.30 per MT to Rs. 8509.14 per MT.