India Hikes Ceiling Price for Difficult Gas Fields to $9.89 per MMBtu
The Indian government has raised the ceiling price for natural gas produced from difficult fields to $9.89 per million British thermal units (MMBtu) for six months starting October 1.
This increase is applicable for the period October 1, 2026, to March 31, 2027, and will benefit Reliance Industries and BP's KG-D6 block, which produces gas from a deepwater field in the Krishna-Godavari basin.
The ceiling price for gas produced from legacy fields of state-owned ONGC and Oil India Ltd remains at $7 per MMBtu. The government also notified an average price (APM) of $11.22 per MMBtu for October, but capped it at $7 per MMBtu.
This move is intended to incentivize investment in developing additional reserves and bringing new production on stream from ONGC and OIL's nomination blocks.