India Raises APM Gas Price
Analysis based on 6 articles · First reported Mar 31, 2026 · Last updated Mar 31, 2026
The increase in administered gas prices for state-run producers like Oil and Natural Gas Corporation and India is expected to positively impact their revenues, potentially leading to an increase in their stock prices. However, this hike will also lead to increased costs for user industries such as fertilizer, CNG, and piped cooking gas, which could affect their profitability and consumer prices.
The government of India has raised the administered price mechanism (APM) gas price for state-run producers Oil and Natural Gas Corporation and India Limited to USD 7 per mmBtu, up from USD 6.75 per mmBtu. This revision applies to gas produced from legacy fields under the regulated pricing regime, which accounts for about 60% of India's domestic gas production. The pricing mechanism, approved in 2023, links gas prices to 10% of the monthly average of the Indian Crude Basket, with a floor of USD 4 and a ceiling that has now been raised to USD 7 per mmBtu for nomination blocks. The India — Petroleum Planning and Analysis Cell (PPAC) confirmed this price for April. This hike is expected to impact user industries like fertilizer, CNG, and piped cooking gas. Additionally, the government has allowed a 20% premium over APM prices for gas from new wells and well interventions by Oil and Natural Gas Corporation and India, and provided marketing and pricing freedom for gas from difficult fields, such as those operated by Reliance Industries, subject to a ceiling.
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