EXPLAINER / NATURAL GAS
Why India has more than one gas price
The applicable price depends on the field and the supply contract. A domestic reference, a producer ceiling, and a delivered LNG price answer different questions.
| Price reference | USD/MMBtu · GCV | Applies to | Effective period |
|---|---|---|---|
| Domestic reference ↗ | 9.00 | Monthly notified domestic natural-gas reference | 1–30 September 2026 |
| Nomination-field APM ceiling ↗ | 7.00 | Gas from ONGC/OIL nomination fields, subject to the ceiling in the same notification | 1–30 September 2026 |
| Difficult-field ceiling ↗ | 8.90 | Deepwater, ultra-deepwater and high-pressure/high-temperature gas | 1 April–30 September 2026 |
Read the reference and the ceiling together
The September notification gives a domestic reference of $9.00/MMBtu, then applies a $7.00/MMBtu ceiling to ONGC/OIL nomination-field gas. Treating the reference as the realised price of that gas would overstate the applicable value.
Imported LNG has a different cost chain
LNG may be bought through a term contract or in the spot market. Its delivered cost also depends on transport, regasification, and the buyer’s contract. Henry Hub measures a US gas benchmark; it does not by itself give the price paid by an Indian LNG buyer.
Keep the period attached to the number
The domestic notification and difficult-field ceiling cover different periods. Use the linked notice for the transaction period being examined.
Sources: PPAC notifications dated 31 August 2026 and 31 March 2026, inspected 11 September 2026. GCV means gross calorific value.
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