The Obama administration has proposed cutting billions of dollars in big tax breaks for oil and natural gas companies on Thursday.

The cuts are expected to raise $26 Billion over the next decade giving a boost to the government budget.

The budget proposal, which must be approved by Congress, includes ending unjustified tax loopholes for oil and gas companies.

The White House rejected as unfounded industry claims that ending the tax breaks would take a significant toll on U.S. oil and gas production.

It said oil and, to a large extent, gas are internationally traded commodities whose prices are determined on the world market, Reuters reported.

The administration said that oil and gas subsidies are costly to the American taxpayer and do little to incentivize production or reduce energy prices.