India Sets Higher Gas Price Ceiling for Difficult Fields

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, 2026.

This hike is applicable to deepwater, ultra-deepwater and high-pressure, high-temperature discoveries, which enjoy marketing and pricing freedom under the government's policy but are subject to a notified ceiling.

The higher ceiling could 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.