India’s gas prices: Two systems, one country
There are two gas-pricing mechanisms in India: the Administered Pricing Mechanism (APM) and the regime included in the New Exploration Licensing Policy (Nelp)
The price of imported LNG is not state-set and depends on bilateral contract negotiations and the international spot market. Implemented in 1987, the APM was the government’s attempt to encourage production from state-chosen nominated gas fields and undeveloped fields, via the Discovered Fields Exploration Policy (DFEP). Under DFEP, private companies, working with India’s state-run firms, negotiated prices through production sharing contracts for undeveloped fields. Once on stream, the gas is sold via state-owned company Gail at APM prices. Prices for APM and DFEP gas are set by the government via the state-runs firms or by a fixed formula agreed by private companies in joint ventures. It is
Also in this section
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
