GENERAL4 Oct 2026
Govt raises deepwater gas price ceiling to $9.89 per MMBtu, APM cap at $7
The government has raised the price ceiling for gas from difficult fields like Reliance's KG-D6 to $9.89 per million British thermal units (MMBtu), up from $8.90. It applies from October 1, 2026 to March 31, 2027. Gas from ONGC and Oil India legacy fields stays capped at $7 per MMBtu. Higher prices may help producers develop costlier offshore gas projects.
Key Statutory Highlights
- The new ceiling of $9.89 per MMBtu applies to gas from deepwater, ultra-deepwater and high-pressure, high-temperature discoveries.
- The higher ceiling is applicable for the period October 1, 2026 to March 31, 2027.
- Gas produced from the legacy fields of ONGC and Oil India stays capped at $7 per MMBtu.
Actionable Advice for Taxpayers / Founders:If your business uses natural gas, check your input cost estimates for the coming months and discuss any expected price change with your supplier or CA before you finalise contracts.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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