New Delhi : With its net price realisation plummeting to almost near its cost of oil production, state- owned Oil and Natural Gas Corp (ONGC) today said it needs a minimum of $ 65 per barrel price to keep investing in oil and gas hunt.
ONGC and Oil India make up for a part of losses fuel retailers incur on selling diesel and cooking fuel at government controlled rates. This subsidy payout is by way of discounts they offer on crude oil sold to them.
Company Chairman and Managing Director Sudhir Vasudeva said the net price realised after subsidy discounts has been falling.
As against a cost of production of $ 40 per barrel of oil (without considering return on investment), ONGC got a net price of $ 40.17 a barrel in Q1 of this fiscal and $ 44.84 in Q2.