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India raises APM gas price from 6.5 to 7 USD per mmBtu for ONGC and Oil India, boosting their revenue but likely raising CNG PNG and fertiliser costs amid global energy volatility.
File photo of Ras Laffan gas facility in Qatar. (representational pic via AP)
The government has raised the price of natural gas produced from legacy fields of state-run Oil and Natural Gas Corporation (ONGC) and Oil India Ltd to USD 7 per million British thermal units (mmBtu), up from about USD 6.5 earlier, according to official notification.
The revision, effective from April, follows the administered pricing mechanism (APM) formula that links domestic gas prices to crude oil trends. The increase is aimed at improving realisations for upstream producers amid firm global energy prices.
Local gas distributors may face higher input costs, potentially affecting prices of CNG and piped natural gas (PNG) for households and transport. Fertiliser producers, which rely heavily on gas as feedstock, could also see a rise in subsidy burden.
This revision in prices come amid the ongoing war in West Asia, straining global energy supply chains and leading to elevated prices. Crude oil prices have risen by almost 50% in the last one month to over $100 per barrel.
According to experts the move will boost revenues of ONGC and Oil India, which account for a large share of domestic gas output, while raising cost pressures for industries dependent on regulated gas supply.
The government had earlier capped APM gas prices at $6.5 per mmBtu, with a provision for gradual increases. The latest hike reflects adjustments under the revised pricing framework as global energy markets remain volatile.
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March 31, 2026, 8:23 pm IST
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