Legal hitch keeps small field oil operators liable for windfall tax

Entities whose FY22 crude oil output was less than 2 mn barrels exempted from windfall tax already

The operators of discovered small fields (DSF) have argued for immediate clarity on windfall tax norms and sought exemption from the tax based on an entity’s annual oil production share and not on the basis of annual oil output at the block level.

Despite the government clarifying that windfall tax would not be levied on small oil field operators, they have remained liable for paying it due to challenges in legally reading the notification.

Crude oil prices have witnessed extreme volatility in 2022, resulting in very high prices for end consumers at petrol pumps. Countries around the world have implemented various measures