India Hikes Regulated Gas Price to $7/mmBtu, Impacts CNG, PNG, and Fertiliser Sectors

• Government raises administered price mechanism (APM) gas price for ONGC and Oil India Limited to $7 per mmBtu from $6.75.
• The revision affects gas from legacy fields under regulated pricing, accounting for 60% of domestic gas production.
• Impacts user industries including fertiliser, CNG for automobiles, and piped cooking gas (PNG).
• Price determined as 10% of monthly average Indian Crude Basket, with a floor of $4 and a ceiling of $6.5 per mmBtu, now raised to $7.
• The price hike comes amidst global energy supply chain strains and elevated crude oil prices due to the West Asia conflict.