Gas prices in India are on the rise—but how will this affect industries and your wallet?
Starting in April 2025, India has raised the price of locally produced natural gas by nearly 4%, from $6.50 to $6.75 per million metric British thermal units (mmBtu). This is the first price hike in two years for gas from older oil fields.
Why the Increase?
Back in 2023, the government set a fixed price cap of $6.50/mmBtu for two years, with a small annual increase allowed afterward. Now, the adjustment has kicked in, aligning with global energy trends.
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Impact on Industries
- Energy Companies: State-run giants like ONGC and Oil India will benefit from higher earnings.
- Consumers & Businesses: Industries like fertilisers and city gas distribution will face higher costs, which could trickle down to consumers.
What About Difficult Fields?
For gas extracted from challenging fields, the price ceiling has been slightly lowered to $10.04/mmBtu (from $10.16) for April-September 2025.
What’s Next?
With global energy markets fluctuating, India’s gas pricing strategy aims to balance producer profits and consumer affordability. Will this move stabilise the sector or lead to higher bills? Only time will tell.
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