Oil cos to benefit from excise cut on diesel, petrol

New Delhi, Feb 28 (UNI) The excise duty cut on diesel and petrol announced by the Finance Minister P Chidambaram in his Union Budget today would benefit the oil marketing companies while the proposal to extend service tax to services rendered for exploration of oil and gas will impact the upstream industry, according to Ernst&Young.

''The oil and gas industry had several expectations from the Union Budget, but the government has offered a mixed set of proposals to the industry,'' Ernst&Young, Oil and Gas Practice, Partner Ravi Mahajan said today.

The proposed reduction in excise duty of petrol and diesel from 8 to 6 per cent would benefit the oil marketing companies, he said.

In line with the recent gas discoveries in India, the tax concessions offered for cross country natural gas distribution networks would provide a much needed impetus for laying pipelines and related infrastructure across the country, Mr Mahajan added.

UNI