Now Reading: Deepwater gas price ceiling raised to $9.89, APM cap stays at $7
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Deepwater gas price ceiling raised to $9.89, APM cap stays at $7
The government has raised the ceiling price for natural gas produced from difficult fields such as Reliance Industries' KG-D6 block to $9.89 per MMBtu for the six months from October 1, 2026, up from $8.90 previously, while keeping the ceiling for legacy fields of ONGC and Oil India Ltd at $7 per MMBtu.
The new ceiling applies from October 1, 2026 to March 31, 2027 for gas from deepwater, ultra-deepwater and high-pressure, high-temperature discoveries, according to a notification by the Petroleum Planning and Analysis Cell of the oil ministry. Gas from such areas enjoys marketing and pricing freedom but is subject to a government-notified ceiling.
For gas from new wells of ONGC and OIL in their nomination blocks, the government allows a 10% premium over the APM price subject to the ceiling, making the effective price up to $7.70 per MMBtu. The higher ceiling could provide relief to producers developing technically challenging offshore gas resources.
Indian Opinion Analysis
Business Standard and The Hindu published near-identical wire copy, reporting the ceiling increase for deepwater gas and the unchanged APM cap as a straight policy notification. Both outlets gave equal weight to the price levels, the applicable period, and the explanation that the higher ceiling aims to incentivise investment in difficult fields while capping legacy-field prices for priority sectors. Neither source added comment from industry or consumer groups, making the coverage uniform factual reporting. The story's implications for fertiliser and power input costs were noted identically by both, leaving no divergence in framing to analyse.
Coverage: 2 sources, 2 neutral
Sources (2): business-standard.com (neutral report), thehindu.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
