Business
India lifts deepwater gas ceiling to $9.89 per MMBtu
The Hindu BusinessLine··4 Oct
India raised the difficult-field gas ceiling to $9.89 per MMBtu for six months from October 1, from $8.90 earlier. PPAC notified the band through March 31, 2027 for deepwater and high-pressure fields. The APM ceiling for legacy ONGC and Oil India gas stays at $7 per MMBtu. The higher cap covers fields such as Reliance and BP's KG-D6.
Prism
What It Means For You
- APM gas remains capped at $7 per MMBtu for priority users in city gas, fertiliser and power.
- New-well gas from ONGC and OIL can take a 10 percent premium, up to $7.70 per MMBtu.
- Domestic price caps feed into CNG, PNG and fertiliser input costs across those sectors.
What's Happening
- PPAC notified $9.89 per MMBtu for deepwater, ultra-deepwater and high-pressure, high-temperature gas.
- The window runs from October 1, 2026 to March 31, 2027.
- Legacy nomination-field APM gas stays under the $7 ceiling even though the formula price for October is $11.22.
How the two price tracks work
- Difficult-field gas has marketing freedom but still faces a government ceiling.
- Legacy APM pricing has used a crude-linked formula with a floor and ceiling since April 2023.
- The APM ceiling moved to $7 in April this year after earlier $6.50 and $6.75 steps.
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