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India Raises Natural Gas Price Ceiling for Difficult Fields to $9.89/MMBtu
M
Moneycontrol•04-10-2026, 14:52
India Raises Natural Gas Price Ceiling for Difficult Fields to $9.89/MMBtu
- •The government increased the natural gas price ceiling for difficult fields, including Reliance Industries and BP's KG-D6 block, to $9.89 per MMBtu from October 1, up from $8.90.
- •This new ceiling applies for the six-month period beginning October 1, 2026, to March 31, 2027, for gas from deepwater, ultra-deepwater, and high-pressure, high-temperature discoveries.
- •Gas from these technically challenging areas enjoys marketing and pricing freedom but is subject to a government-notified ceiling.
- •The ceiling for gas from legacy fields of state-run ONGC and Oil India Ltd remains capped at $7 per MMBtu, despite a notified APM price of $11.22 per MMBtu for October.
- •New wells of ONGC and OIL in nomination blocks can receive a 10% premium over the APM gas price, capped at $7.70 per MMBtu.
Key Questions Answered
The government has raised the ceiling price for natural gas produced from difficult fields, such as the KG-D6 block, to $9.89 per million British thermal units (MMBtu) for the six-month period beginning October 1, 2026, up from $8.90 previously.
The ceiling price for gas produced from the legacy fields of state-run ONGC and Oil India Ltd remains capped at $7 per MMBtu.
The APM gas price applies to gas produced from the legacy fields of state-owned ONGC and OIL, which is utilized by priority sectors including city gas distribution, fertiliser, and power.
