Nov 11 Reuters India39;s Oil and Natural Gas Corp ONGC reported a surprise rise in secondquarter profit on Monday, helped by a decline in tax expenses due to the scrapping of the levy on petroleum crude.

The stateowned firm39;s standalone profit jumped 17 to 119.84 billion rupees 1.42 billion in the quarter ended Sept. 30. Analysts had expected 91.23 billion rupees, according to data compiled by LSEG

Its standalone earnings exclude profit from its joint ventures and operations outside the country.

The company, which contributes to around 71 of domestic crude oil production, posted a 6.5 drop in tax expenses to 30.52 billion rupees in the threemonth period.

During the quarter, India scrapped the windfall tax it had levied on petroleum crude in 2022. The windfall tax was scrapped as global oil prices softened compared to 2022.

However, its revenue from operations fell 3.6 to 338.81 billion rupees, missing analysts39; estimate of 340.56 billion rupees, according to data compiled by LSEG.

ONGC39;s crude oil price realisation, or the price at which it sells the product, fell 7.7 to 78.33 per barrel in the second quarter. Global crude oil prices slumped around 17 in the quarter.

Domestic fuel consumption in the quarter dipped as aboveaverage rainfall led to a slowdown in irrigation and farm machinery usage, which consumes diesel. Sales of automobiles, another key diesel demand driver, also declined.

Peer Oil India, earlier this month, posted a quarterly profit that…