The Oil & Gas sector attracted a lot of attention during the entire last year due to geo-political factors, but with economic activities again on track with Covid under control, the demand for Oil & Gas is expected to surge in the current year.
As the country ramps up its efforts towards a gas based economy, we expect the upcoming Union Budget to continue its focus on enabling policy framework and measures for the Oil & Gas sector.
Natural gas, crude oil and other petroleum products are currently outside the GST ambit and there is a long standing demand that these be brought under the GST regime.
Reduction in GST rates for regasification of LNG should also be considered given the high prevailing price of LNG. The government must consider making crucial policy reforms to support the energy sector and safeguard the country from the volatile global crude markets.
