India has raised the ceiling price for natural gas produced from deepwater, ultra-deepwater and high-pressure, high-temperature fields to $9.89 per MMBtu, up from $8.90, for the six months beginning October 1, 2026.
The revised ceiling, applicable until March 31, 2027, is expected to support investment in technically challenging offshore gas projects, including Reliance Industries-BP’s KG-D6 block.
Meanwhile, the government has kept the ceiling for legacy gas produced by state-run ONGC and Oil India at $7 per MMBtu, despite the October APM price being notified at $11.22 per MMBtu.
New wells in their nomination blocks can receive a 10% premium, allowing prices of up to $7.70 per MMBtu.
The policy is aimed at encouraging higher domestic gas production while containing costs for priority sectors such as fertilizer, power and city gas distribution.
