India Raises Gas Price Ceiling for Difficult 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 MMBtu, effective October 1, 2026. This is a 10% increase from the previous cap of $8.90 per MMBtu.

The higher ceiling applies to gas produced from deepwater and ultra-deepwater discoveries, including the KG-D6 block of Reliance Industries and BP. Producers in these areas enjoy marketing and pricing freedom under the government's policy, but are subject to a government-notified ceiling.

The new ceiling for difficult fields is aimed at providing 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. The Indian government has also raised the APM price for October to $11.22 per MMBtu, but capped it at $7 per MMBtu.