Government raises deepwater gas price ceiling to $9.89/MMBtu; APM gas cap at $7

By The Hindu Staff

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Government raises deepwater gas price ceiling to $9.89/MMBtu; APM gas cap at $7 — Photo credit: The Hindu

The new ceiling for gas from deepwater, ultra-deepwater and high-pressure, high-temperature discoveries is applicable for the period from October 1, 2026, to March 31, 2027, according to a notification by the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry. | Photo Credit: Getty Images/iStockphoto

The government has raised the ceiling price for natural gas produced from difficult fields, such as the KG-D6 block of Reliance Industries and BP, to $9.89 per million British thermal units (MMBtu) for the six months beginning October 1, 2026, from $8.90 previously, while keeping the ceiling for gas produced from the legacy fields of state-run Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) at $7 per MMBtu.

Gas produced from such difficult areas enjoys marketing and pricing freedom under the government's policy, but is subject to a government-notified ceiling.

The higher ceiling could provide some 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.

Originally published by The Hindu on Oct 16, 2026 Read the full article at thehindu.com

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