Artefact · interactive

Four prices for the same molecule.

Indian natural gas doesn't have one price. It has four, applied on the same calendar day, differing by where the gas was produced and when the field started producing. Understanding the split is the skeleton key to every upstream PSU's quarterly result and every city-gas retail tariff.

01 / 04Regime 1

APM ceiling — legacy domestic fields

Floor USD 4 / ceiling USD 6.5 per MMBtu

Gas from ONGC and OIL's nomination fields (pre-NELP acreage — Mumbai High, KG onshore, western offshore) is priced under the Administered Pricing Mechanism with a floor and a ceiling.

Formula: 10% of the Indian Crude Basket monthly average, subject to USD 4 floor and USD 6.5 ceiling per MMBtu. Revised every six months (1 April, 1 October).

Who gets it first. 100% of APM gas goes to the priority sector — City Gas Distribution for CNG transport + piped domestic PNG. This is the gas that determines your Delhi / Mumbai CNG price.

The politics in one line. A rise in crude pushes APM and HPHT ceilings up (formula-linked) while simultaneously raising imported LNG — industrial consumers squeeze, CNG prices get considered for a hike, and MoPNG gets asked to raise the APM allocation to CGD to cushion retail. This is the triangulation you can see playing out every time Brent moves 20% in a quarter.

Ceilings shown are current as of the latest half-yearly MoPNG notification. The Parikh Committee (2022) restated the formula and introduced the two-year premium on incremental production; the floor-ceiling mechanism was adopted from April 2023. Live Henry Hub tracking lives on the gas page.