India Raises Gas Price Ceiling for Difficult Fields

The Indian government has increased 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, 2026.

This new ceiling is applicable to gas from deepwater, ultra-deepwater, and high-pressure, high-temperature discoveries. The government has also kept the ceiling price for gas produced from legacy fields of state-run Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) at $7 per MMBtu.

The higher ceiling is expected to provide relief to producers developing India's more technically challenging offshore gas resources, where production costs are generally higher than those from mature onshore and legacy fields.