High global oil prices bring unexpected bonanza for exchequer

February 16th, 2009 - 7:52 pm ICT by IANS  

New Delhi, Feb 16 (IANS) High global oil prices, that saw a barrel of crude sell for nearly $150 per barrel at one point last year, has secured unexpected bonanza to the government in the form of royalty and profit petroleum, budget papers showed Monday.

Against the budgeted receipts of Rs.6,777.04 crore (Rs.67.77 billion/$1.35 billion) for this fiscal from petroleum, revised receipts from royalty, profit petroleum and oil exploration licensing fee have been pegged at Rs.9,423.23 crore (Rs.94.23 billion/$1.88 billion).

This was part of the data on receipts budget tabled in parliament by External Affairs Minister Pranab Mukherjee, that shows a budgeted receipt of Rs.7,333.76 crore (Rs.73.33 billion/$1.46 billion) for the next fiscal.

The central government is entitled to royalty on oil and gas produced from offshore fields, a share of oil from fields given to the private sector, called profit petroleum, and licence fee for being granted the right to conduct exploration activities.

Among them, the royalty and the profit petroleum under production sharing contracts is determined on the basis of international prices, which shot up during the middle of last fiscal to result in the unexpected bonanza, the budget papers indicated.

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