October 5, 2026: 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

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.

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.

For gas produced by ONGC and OIL from their nomination fields, the government has notified an Administered Price Mechanism (APM) price of $11.22 per MMBtu for October, but the actual price remains capped at $7 per MMBtu, according to PPAC.

The APM gas price applies to gas produced from the legacy fields of the two state-owned companies and is used by priority sectors including city gas distribution, fertiliser and power.

(Source: The Hindu)