Page 57 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The Scheme is conditional upon and subject to, inter-alia receipt of all requisite approvals and consents
required under applicable law including, approvals from the respective shareholders and creditors of both
the companies, and all relevant regulatory and governmental authorities; and the Merged Entity
continuing to qualify as a ‘Government Company’ under the Companies Act, 2013 and the Government of
India continuing to retain majority voting rights and control in the merged entity (directly or indirectly).

Pursuant to the Scheme and valuation report, the Share Exchange Ratio for the Proposed Merger of REC
into PFC shall be 88 equity shares of PFC of INR 10/- each fully paid up for every 100 equity shares of REC
of INR 10/- each fully paid up to be issued to the shareholders of REC as existing on a record date to be
determined by the Boards of PFC and REC (as may be applicable) at a future date.

10. India cuts windfall tax on diesel, raises petrol tax from July

India has lowered windfall taxes on exports of diesel and aviation turbine fuel as global oil prices ease,
while raising the duty on petrol exports, according to a government order.

The duty on diesel exports has been cut to 8.5 rupees per litre from 14 rupees, while the aviation t? urbine
fuel duty has been set at 7.5 rupees/litre, down from 12.5 rupees. The export duty on petrol has been
increased to 4 rupees per litre from 1.5 rupees to ensure domestic supply.

The new rates will apply from July 1, 2026. Oil prices have fallen sharply from peaks above $126 per barrel,
as easing geopolitical tensions and r? estored shipping flows through the Strait of Hormuz have reduced
fears of prolonged supply disruptions.

Economists and analysts forecast Brent crude will average $84.50 per barrel in 2026, against $90.44
projected last ?month. At the time of imposition of the export levy, exemption was provided for exports of
petrol, diesel and ATF made ?by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka.
The exemption has now been ?extended also to exports made by public sector oil companies to Mauritius
and Maldives.

11. 75 Lakh Households Targeted for Rooftop Solar Installations by December 2026: Union New &
Renewable Minister, Shri Pralhad Joshi

PM Surya Ghar: Muft Bijli Yojana has already crossed 40 lakh beneficiary households within 2 years and I
am hopeful that by the end of 2026, we will cross 75 lakh households by December 2026, said Union
Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution, Shri Pralhad
Joshi while participating in a fireside chat programme organised during ‘Two years of PM Suryaghar Muft
Bijli Yojana: Scaling the solar home to 1 crore rooftops’.

Shri Joshi said the Utility-Linked Aggregation (ULA) model is designed to accelerate implementation,
particularly among underserved households. Under the model, around 30 lakh rooftop solar installations
have already been planned across States, with utilities playing a key role in facilitating faster adoption and
execution. He noted that the initiative will particularly benefit families consuming between 1 kW and 3
kW of electricity and help ensure wider access to affordable clean energy. With more than 65 lakh

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