Archive · 4 Oct 2026
India Raises Difficult-Field Gas Price Ceiling to $9.89
India has increased the maximum price for gas from deepwater and other difficult fields.
The new limit is $9.89 per MMBtu, up from $8.90.
It applies for six months, from October 1, 2026, to March 31, 2027.
The change includes difficult projects such as KG-D6, operated by Reliance Industries and BP.
Gas from older fields run by ONGC and Oil India still has a $7-per-MMBtu ceiling.
The October APM price is $11.22, but that older-field cap remains $7.
Some gas from new wells can receive a 10% premium, bringing its price to as much as $7.70.
The government says pricing arrangements are intended to encourage investment and more gas production.
Gas is used by city gas distributors, fertiliser makers and power producers.
The government raised the ceiling for gas from deepwater and other difficult fields to $9.89 per MMBtu from $8.90.
The revised ceiling applies from October 1, 2026, through March 31, 2027.
The increase covers deepwater, ultra-deepwater and high-pressure, high-temperature fields, including Reliance Industries and BP’s KG-D6 project.
The ceiling for gas from legacy nomination fields of ONGC and Oil India remains $7 per MMBtu, despite an October APM price of $11.22.
Eligible gas from new wells in ONGC and Oil India nomination blocks can receive a 10% premium, up to $7.70 per MMBtu.
- Who
- The Indian government set the ceilings, affecting gas producers including Reliance Industries, BP, ONGC and Oil India.
- What
- It raised the difficult-field gas ceiling to $9.89 per MMBtu while retaining the $7 ceiling for legacy nomination fields.
- When
- The revised difficult-field ceiling applies from October 1, 2026, to March 31, 2027.
- Where
- India, including deepwater fields such as KG-D6 in the Krishna-Godavari basin.
- Why
- The difficult-field pricing regime is intended to encourage investment in technically challenging gas resources and production.
- Difficult-field ceiling
- $9.89 per MMBtu, increased from $8.90
- Effective period
- October 1, 2026, to March 31, 2027
- Fields covered
- Deepwater, ultra-deepwater and high-pressure, high-temperature discoveries
- Legacy-field ceiling
- $7 per MMBtu for gas from ONGC and Oil India nomination fields
- October APM price
- $11.22 per MMBtu; the actual legacy-field price remains capped at $7
- New-well premium
- A 10% premium is permitted, allowing eligible new-well gas to reach up to $7.70 per MMBtu
- Priority users
- City gas distribution, fertiliser and power sectors
Sources
Centre raises deepwater gas price ceiling to $9.89 per MMBtu; APM gas cap at $7
India hikes deepwater gas price ceiling to $9.89 for difficult fields; Reliance-BP’s KG-D6 to benefit
Govt Hikes Gas Price Ceiling for Difficult Fields to $9.89/MMBtu; Retains $7 Cap for Legacy Fields
