New Delhi: The Petroleum Planning and Analysis Cell (PPAC) has notified a price ceiling of USD 8.90 per MMBTU for gas produced from deepwater, ultra-deepwater and high-pressure, high-temperature (HPHT) fields for the period April 1 to September 30, 2026. The notification, dated March 31, 2026, states: “the gas price ceiling for the period 1st April 2026 – 30th September 2026 is notified as US$ 8.90/MMBTU on Gross Calorific Value (GCV) basis.”
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The ceiling applies to gas output from difficult fields that enjoy marketing and pricing freedom under the government’s policy framework.
The latest ceiling comes as the government raised the administered price mechanism (APM) gas rate for legacy fields operated by ONGC and Oil India to USD 7 per MMBTU, as reported earlier.
While APM gas pricing is linked to a formula with a floor and ceiling, deepwater and HPHT fields are governed by a separate regime that allows market-linked pricing, subject to a notified cap.
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The PPAC notification references the government’s 2016 guidelines granting pricing freedom for gas from deepwater and HPHT discoveries. The move ensures a calibrated pricing structure — allowing producers some upside from challenging fields while preventing excessive price spikes for consumers.