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The Print
2 days ago
- Business
- The Print
APM gas price hits ceiling of USD 6.75
USD 6.75 per mmBtu is the ceiling price for gas from legacy fields, known as APM gas, which accounts for roughly half the input used in producing CNG. It is also utilised in power generation, fertiliser production, and piped directly to households for cooking. As part of the monthly revision, the price of natural gas from legacy fields operated by state-owned companies was increased to USD 6.75 per million British thermal units, up from USD 6.41, according to a notification from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry. New Delhi, Jun 30 (PTI) The price of natural gas used for producing CNG for vehicles and cooking gas was raised 5 per cent for July, following a surge in oil prices triggered by Israel's military strike on Iran. A higher input gas price would squeeze margins of city gas retailers. City gas retailers may choose to hike CNG prices if the increase pinches them. APM gas price is revised on the first of every month, set at 10 per cent of the average import price of crude oil in the preceding month. But this price is subject to a floor or minimum rate and a ceiling or maximum rate. The ceiling price for 2025-26 is USD 6.75. According to PPAC, the price of APM gas for the period from July 1 to July 31, 2025, was calculated at USD 6.89 per mmBtu on a gross calorific value (GCV) basis. However, the rate will be capped at the ceiling price of USD 6.75. In the last revision effective June 1, the APM gas price was cut for the first time in two years, dropping to USD 6.41 per mmBtu from USD 6.75 in the previous month. This was the first reduction since the government in April 2023 implemented a new formula to price APM gas. In April 2023, the Union Cabinet accepted an expert committee report to price on a monthly basis the gas from legacy fields, called APM gas, at 10 per cent of monthly average import price of crude oil with a floor of USD 4 and a cap of USD 6.5 per mmBtu. The cap price was to remain unchanged for two years and rise by USD 0.25 annually thereafter. In line with this, the cap rose to USD 6.75 per mmBtu in April 2025. In the first two years, the price of gas using this formula ranged between USD 7.29 per mmBtu and USD 9.12 but the cap ensured that the rate were fixed at USD 6.50 per mmBtu. In April, the price according to this formula came to USD 7.26 per mmBtu but the final rate was USD 6.75 in line with higher cap. In May, the price came to USD 6.93 but was capped to USD 6.75 for consumers. Since there has been a fall in international oil prices in view of uncertain demand outlook, the Indian basket of crude oil averaged around USD 64 in May. Using this as a benchmark, the APM gas price came to USD 6.41 per mmBtu on GCV basis, according to PPAC. But oil prices rose after Israel attacked Iran last month. That rise has translated into higher APM gas price as well. The rise in benchmark also means that the price of gas that ONGC produced from new wells in the APM fields would also go up. The government had allowed ONGC to charge 12 per cent of the oil price for the gas coming from new wells it drills. The higher price was to make up for the capex incurred in drilling new wells. As much as 5 million standard cubic meters per day of gas — or a 10th of all gas produced by ONGC — comes from new wells, according to industry sources. APM gas is one produced by state-owned firms Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) from fields that were given to them on nomination basis. This gas is the input that is used in the cooking gas piped to household kitchens as well as turned into CNG for running automobiles, making fertilisers and producing electricity. Prior to April 2023, the price of gas produced from fields covered under the Administered Price Mechanism (APM) regime — which accounts for 70 per cent of domestic gas production — was determined semi-annually based on a formula that benchmarked it to average international prices at four gas trading hubs. APM gas is provided to city gas distributors for supply to CNG and residential PNG segments, which together account for 60 per cent of their sales volume. Subsequent to the April 2023 decision, APM gas prices are revised on a monthly basis but subject to ceiling and floor price. The ceiling price now is USD 6.75 per MMBtu and will rise by another USD 0.25 per mmBtu in April next year. APM gas prices had seen wide fluctuations in the years running up to the April 2023 decision. From a low of USD 1.79 per mmBtu in 2021, to a high of USD 8.57 for the six-month period ending March 2023. The rate for difficult fields like KG-D6 of Reliance Industries has been set at USD 10.04 per MMBtu for six months beginning April 1 as compared to USD 10.16 in the preceding six months period, according to PPAC. PTI ANZ ANZ TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
2 days ago
- Business
- Time of India
APM gas price hits ceiling of $6.75
New Delhi: The price of natural gas used for producing CNG for vehicles and cooking gas was raised 5 per cent for July, following a surge in oil prices triggered by Israel's military strike on Iran. As part of the monthly revision, the price of natural gas from legacy fields operated by state-owned companies was increased to $6.75 per million British thermal units, up from $6.41, according to a notification from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry. $6.75 per mmBtu is the ceiling price for gas from legacy fields, known as APM gas, which accounts for roughly half the input used in producing CNG. It is also utilised in power generation, fertiliser production, and piped directly to households for cooking. A higher input gas price would squeeze margins of city gas retailers. City gas retailers may choose to hike CNG prices if the increase pinches them. APM gas price is revised on the first of every month, set at 10 per cent of the average import price of crude oil in the preceding month. But this price is subject to a floor or minimum rate and a ceiling or maximum rate. The ceiling price for 2025-26 is $6.75. According to PPAC, the price of APM gas for the period from July 1 to July 31, 2025, was calculated at $6.89 per mmBtu on a gross calorific value (GCV) basis. However, the rate will be capped at the ceiling price of $6.75. In the last revision effective June 1, the APM gas price was cut for the first time in two years, dropping to $6.41 per mmBtu from $6.75 in the previous month. This was the first reduction since the government in April 2023 implemented a new formula to price APM gas. In April 2023, the Union Cabinet accepted an expert committee report to price on a monthly basis the gas from legacy fields, called APM gas, at 10 per cent of monthly average import price of crude oil with a floor of $4 and a cap of $6.5 per mmBtu. The cap price was to remain unchanged for two years and rise by $0.25 annually thereafter. In line with this, the cap rose to $6.75 per mmBtu in April 2025. In the first two years, the price of gas using this formula ranged between $7.29 per mmBtu and $9.12 but the cap ensured that the rate were fixed at $6.50 per mmBtu. In April, the price according to this formula came to $7.26 per mmBtu but the final rate was $6.75 in line with higher cap. In May, the price came to $6.93 but was capped to $6.75 for consumers. Since there has been a fall in international oil prices in view of uncertain demand outlook, the Indian basket of crude oil averaged around $64 in May. Using this as a benchmark, the APM gas price came to $6.41 per mmBtu on GCV basis, according to PPAC. But oil prices rose after Israel attacked Iran last month. That rise has translated into higher APM gas price as well. The rise in benchmark also means that the price of gas that ONGC produced from new wells in the APM fields would also go up. The government had allowed ONGC to charge 12 per cent of the oil price for the gas coming from new wells it drills. The higher price was to make up for the capex incurred in drilling new wells. As much as 5 million standard cubic meters per day of gas -- or a 10th of all gas produced by ONGC -- comes from new wells, according to industry sources. APM gas is one produced by state-owned firms Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) from fields that were given to them on nomination basis. This gas is the input that is used in the cooking gas piped to household kitchens as well as turned into CNG for running automobiles, making fertilisers and producing electricity. Prior to April 2023, the price of gas produced from fields covered under the Administered Price Mechanism (APM) regime -- which accounts for 70 per cent of domestic gas production -- was determined semi-annually based on a formula that benchmarked it to average international prices at four gas trading hubs. APM gas is provided to city gas distributors for supply to CNG and residential PNG segments, which together account for 60 per cent of their sales volume. Subsequent to the April 2023 decision, APM gas prices are revised on a monthly basis but subject to ceiling and floor price. The ceiling price now is $6.75 per MMBtu and will rise by another $0.25 per mmBtu in April next year. APM gas prices had seen wide fluctuations in the years running up to the April 2023 decision. From a low of $1.79 per mmBtu in 2021, to a high of $8.57 for the six-month period ending March 2023. The rate for difficult fields like KG-D6 of Reliance Industries has been set at $10.04 per MMBtu for six months beginning April 1 as compared to $10.16 in the preceding six months period, according to PPAC. PTI
Time of India
3 days ago
- Business
- Time of India
APM gas price hits ceiling of $6.75 per mmBtu
The price of natural gas used for producing CNG for vehicles and cooking gas was raised 5 per cent for July, following a surge in oil prices triggered by Israel's military strike on Iran. As part of the monthly revision, the price of natural gas from legacy fields operated by state-owned companies was increased to USD 6.75 per million British thermal units, up from USD 6.41, according to a notification from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry. USD 6.75 per mmBtu is the ceiling price for gas from legacy fields, known as APM gas, which accounts for roughly half the input used in producing CNG. It is also utilised in power generation, fertiliser production, and piped directly to households for cooking. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo A higher input gas price would squeeze margins of city gas retailers. City gas retailers may choose to hike CNG prices if the increase pinches them. APM gas price is revised on the first of every month, set at 10 per cent of the average import price of crude oil in the preceding month. But this price is subject to a floor or minimum rate and a ceiling or maximum rate. The ceiling price for 2025-26 is USD 6.75. Live Events According to PPAC, the price of APM gas for the period from July 1 to July 31, 2025, was calculated at USD 6.89 per mmBtu on a gross calorific value (GCV) basis. However, the rate will be capped at the ceiling price of USD 6.75. In the last revision effective June 1, the APM gas price was cut for the first time in two years, dropping to USD 6.41 per mmBtu from USD 6.75 in the previous month. This was the first reduction since the government in April 2023 implemented a new formula to price APM gas. In April 2023, the Union Cabinet accepted an expert committee report to price on a monthly basis the gas from legacy fields, called APM gas, at 10 per cent of monthly average import price of crude oil with a floor of USD 4 and a cap of USD 6.5 per mmBtu. The cap price was to remain unchanged for two years and rise by USD 0.25 annually thereafter. In line with this, the cap rose to USD 6.75 per mmBtu in April 2025. In the first two years, the price of gas using this formula ranged between USD 7.29 per mmBtu and USD 9.12 but the cap ensured that the rate were fixed at USD 6.50 per mmBtu. In April, the price according to this formula came to USD 7.26 per mmBtu but the final rate was USD 6.75 in line with higher cap. In May, the price came to USD 6.93 but was capped to USD 6.75 for consumers. Since there has been a fall in international oil prices in view of uncertain demand outlook, the Indian basket of crude oil averaged around USD 64 in May. Using this as a benchmark, the APM gas price came to USD 6.41 per mmBtu on GCV basis, according to PPAC. But oil prices rose after Israel attacked Iran last month. That rise has translated into higher APM gas price as well. The rise in benchmark also means that the price of gas that ONGC produced from new wells in the APM fields would also go up. The government had allowed ONGC to charge 12 per cent of the oil price for the gas coming from new wells it drills. The higher price was to make up for the capex incurred in drilling new wells. As much as 5 million standard cubic meters per day of gas -- or a 10th of all gas produced by ONGC -- comes from new wells, according to industry sources. APM gas is one produced by state-owned firms Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) from fields that were given to them on nomination basis. This gas is the input that is used in the cooking gas piped to household kitchens as well as turned into CNG for running automobiles, making fertilisers and producing electricity. Prior to April 2023, the price of gas produced from fields covered under the Administered Price Mechanism (APM) regime -- which accounts for 70 per cent of domestic gas production -- was determined semi-annually based on a formula that benchmarked it to average international prices at four gas trading hubs. APM gas is provided to city gas distributors for supply to CNG and residential PNG segments, which together account for 60 per cent of their sales volume. Subsequent to the April 2023 decision, APM gas prices are revised on a monthly basis but subject to ceiling and floor price. The ceiling price now is USD 6.75 per MMBtu and will rise by another USD 0.25 per mmBtu in April next year. APM gas prices had seen wide fluctuations in the years running up to the April 2023 decision. From a low of USD 1.79 per mmBtu in 2021, to a high of USD 8.57 for the six-month period ending March 2023. The rate for difficult fields like KG-D6 of Reliance Industries has been set at USD 10.04 per MMBtu for six months beginning April 1 as compared to USD 10.16 in the preceding six months period, according to PPAC.
Time of India
7 days ago
- Business
- Time of India
Crude oil imports rise 5.9% in May, LNG imports fall 15.3%
New Delhi: India's crude oil imports rose by 5.9 per cent in May 2025 and by 2.5 per cent during April-May of the current financial year, while imports of petroleum, oil and lubricants (POL) products declined by 3.9 per cent and 6.9 per cent respectively, according to data released by the Petroleum Planning and Analysis Cell (PPAC). The decline in POL product imports during April-May 2025-26 was attributed mainly to reduced imports of fuel oil, lubricants/lube oil base stock (LOBS), and bitumen. The net import bill for oil and gas stood at $11.1 billion in May 2025 compared to $13.1 billion in May 2024. Of the total, crude oil imports were $11.3 billion, liquefied natural gas (LNG) imports were $1.2 billion, while exports were $3.3 billion. Indigenous crude oil and condensate production in May 2025 stood at 2.4 million metric tonnes (MMT), registering a 1.7 per cent decline compared to the same month last year. Oil India Limited produced 0.3 MMT, ONGC produced 1.5 MMT, and private/other operators produced 0.6 MMT. Crude oil processed during May 2025 totalled 23.1 MMT, up 0.4 per cent from May 2024. This included 15.6 MMT processed by public sector and joint venture refiners and 7.5 MMT by private refiners. Of the total crude processed, 1.8 MMT was indigenous and 21.3 MMT was imported. However, the cumulative crude oil processed during April-May 2025-26 showed a 0.1 per cent de-growth from the previous fiscal. The average price of Brent crude was $64.22 per barrel in May 2025, down from $67.79 per barrel in April 2025 and $82.05 per barrel in May 2024. The Indian basket averaged $64.04 per barrel in May 2025, down from $67.73 in April 2025 and $83.62 in May 2024. Production of petroleum products in May 2025 was 24.3 MMT, 1 per cent higher than May 2024. Of this, 24 MMT was produced by refineries and 0.3 MMT by fractionators. The cumulative production for April-May 2025-26 declined by 1.6 per cent year-on-year. Key product shares in May 2025 included HSD (42.1 per cent), MS (17.1 per cent), naphtha (7.1 per cent), ATF (6.2 per cent), pet coke (4.9 per cent), and LPG (4.4 per cent). Exports of POL products increased by 7.0 per cent in May 2025 but declined by 3.4 per cent during April-May 2025-26. The fall in exports was mainly due to lower shipments of HSD and ATF. Consumption of petroleum products in April-May 2025 totalled 41.5 MMT, showing a 0.6 per cent decline from the same period last year. Consumption in May 2025 stood at 21.3 MMT, up 1.1 per cent from May 2024. Growth was driven by LPG (8.3 per cent), MS (7.2 per cent), ATF (4.1 per cent), and HSD (3.2 per cent). Total natural gas consumption in May 2025 was 5,918 million standard cubic meters (MMSCM), down 10 per cent from the same month last year. Cumulative consumption for April-May 2025 was 11,764 MMSCM, down 1.8 per cent year-on-year. Gross natural gas production in May 2025 was 2,979 MMSCM, 4.0 per cent lower than May 2024. Cumulative production for April-May 2025 was 5,888 MMSCM, down 2.9 per cent. LNG imports in May 2025 were 2,977 MMSCM, down 15.3 per cent year-on-year. The cumulative LNG imports till May 2025 were 5,953 MMSCM, 1.0 per cent lower than the same period last year. Ethanol blending in petrol stood at 19.8 per cent in May 2025, and the cumulative blending from November 2024 to May 2025 was 18.8 per cent.
Time of India
23-06-2025
- Business
- Time of India
India's crude oil imports hit record high, up nearly 10% m/m in May
India's crude oil imports reached a record 23.32 million metric tons in May, up 9.8 per cent month-on-month, government data showed on Monday. The data highlights demand in India, the world's third-largest importer and consumer of oil, reflecting the broader economic and industrial activities driving it. India's fuel demand rose to 21.32 million metric tons in May, its highest in more than a year, Oil Ministry data showed this month. India will take measures to safeguard domestic fuel supplies, oil minister Hardeep Singh Puri said on Sunday, after U.S. attacks on Iran's nuclear sites over the weekend raised the risk of disruption to Middle Eastern oil and gas, leading to soaring energy prices. Oil prices jumped on Monday to their highest since January. The share of Russian oil in India's imports in May declined marginally as refiners cut purchases from Moscow by 15.7 per cent to 1.7 million barrels per day (bpd), tanker data from trade and industry sources showed. By the numbers On a yearly basis, crude oil imports climbed 5.9 per cent from 22.03 million metric tons in May 2024, according to data from the Petroleum Planning and Analysis Cell (PPAC). Imports of crude oil products fell by about 3.9 per cent on a yearly basis to 4.20 million tons in May, while product exports rose more than 7 per cent to 5.63 million tons.
