Govt raises deepwater gas ceiling to $9.89, APM stays at $7
In short
The government raised the gas ceiling for deepwater and difficult fields to $9.89 per MMBtu for October 1, 2026 to March 31, 2027. The old ceiling was $8.90.
ONGC and Oil India legacy gas still has a $7 cap, and new-well gas can get up to $7.70. This may help some producers, but the full market effect is not stated.
What the reporting says
The government raised the ceiling price for natural gas from difficult fields, including Reliance Industries and BP’s KG-D6 block, to $9.89 per MMBtu for October 1, 2026 to March 31, 2027, from $8.90 earlier, according to a notification summarized by publishers. The same reporting said ONGC and Oil India legacy gas remains capped at $7 per MMBtu, while new-well gas can get a 10% premium up to $7.70. The move supports pricing freedom for deepwater producers, but the broader market impact is not fully stated.
Why it matters
A government notification raised the ceiling price for gas from difficult fields, including the KG-D6 block of Reliance Industries and BP, to $9.89 per MMBtu for the six months starting October 1, 2026. At the same time, the ceiling for gas from ONGC and Oil India legacy fields stays at $7 per MMBtu, with a 10% premium allowed for new-well gas. The change mainly affects upstream gas producers and pricing policy.