Budget 2023-24 wishlist: Here are the key challenges in oil & gas sector

Key challenges

• Policy stability on transport fuel pricing
• GST on petroleum products and gas: Exclusion leading to depriving of benefits of classical GST regime and increasing administrative burden
• Ability of E&P concessions to attract large and experienced investors
• Emergence of renewable fuels causing displacement of petroleum fuels’ demand
• Investment to supply PNG and LPG to domestic consumers may go obsolete in the near-term due to the proposal to electrify homes

Industry ask

• Support SMEs to develop infrastructure for molecules like hydrogen, ethanol, biodiesel, biomass, and biogas
• Consumers demand aggregators tying up with cheaper LNG/gas sources
• Oil companies and fossil fuel-dependent industries seek clarity on emerging carbon credit policies to plan their future investments
• Development of large petrochemicals and chemicals zones for investors to avoid hunting for land, utilities, and supply chains