India Raises Gas Price Ceiling to $9.89 per MMBtu

The Indian government has increased the ceiling price for natural gas produced from difficult fields to USD 9.89 per MMBtu, effective October 1, 2026. This change is part of a six-month period ending March 31, 2027.

The new rate applies to gas produced by Reliance Industries and BP from the KG-D6 block in the Krishna-Godavari basin. This development could provide some relief to producers developing India's technically challenging offshore gas resources, where production costs are generally higher than those from mature onshore and legacy fields.

The APM price for ONGC and Oil India Ltd's legacy fields remains capped at USD 7 per MMBtu, despite the government notifying an APM price of USD 11.22 per MMBtu for October.