<p>The Union Cabinet Wednesday approved deregulation of the sale of domestically-produced crude oil, a move that will spur oil production domestically and help companies like Oil India and ONGC get better realisations for their crude.</p>.<p>Until now, the Centre used to decide which state-run refinery gets how much crude from each producer.</p>.<p>"The decision will ensure marketing freedom for all companies engaged in oil exploration and/or production. Exploration and production companies are free to sell crude oil from their fields in Indian market and exports shall continue to be prohibited,"Cabinet minister Anurag Thakur said briefing reporters.</p>.<p>This decision will further spur economic activities, incentivise investments in upstream oil and gas sector and will build on a series of targeted transformative reforms rolled out since 2014.</p>.<p>The policies relating to production, infrastructure and marketing of oil and gas have been made more transparent with a focus on ease of doing business and facilitating more operational flexibility to operators/industry, said the Cabinet resolution after Prime Minister Narendra Modi chaired the meeting on Cabinet Committee on Economic Affairs.</p>.<p>India is the world’s third largest consumer of crude oil and ships more than 85 per cent of its requirements from abroad.</p>
<p>The Union Cabinet Wednesday approved deregulation of the sale of domestically-produced crude oil, a move that will spur oil production domestically and help companies like Oil India and ONGC get better realisations for their crude.</p>.<p>Until now, the Centre used to decide which state-run refinery gets how much crude from each producer.</p>.<p>"The decision will ensure marketing freedom for all companies engaged in oil exploration and/or production. Exploration and production companies are free to sell crude oil from their fields in Indian market and exports shall continue to be prohibited,"Cabinet minister Anurag Thakur said briefing reporters.</p>.<p>This decision will further spur economic activities, incentivise investments in upstream oil and gas sector and will build on a series of targeted transformative reforms rolled out since 2014.</p>.<p>The policies relating to production, infrastructure and marketing of oil and gas have been made more transparent with a focus on ease of doing business and facilitating more operational flexibility to operators/industry, said the Cabinet resolution after Prime Minister Narendra Modi chaired the meeting on Cabinet Committee on Economic Affairs.</p>.<p>India is the world’s third largest consumer of crude oil and ships more than 85 per cent of its requirements from abroad.</p>