Administered price mechanism for natural gas. 2 New Delhi: In a strategic move to enhance the production of natural gas, the Ministry of Petroleum and Natural Gas (MOP&NG) has notified a revised pricing policy that will India has a complex and heterogeneous gas pricing system mainly composed of two pricing regimes viz. Under the APM, the Gas priced under APM (Administered Price Mechanism) is set by the Government of India. This move came amid a global rise in gas prices- something that was hurting For the first time in two years, the government has reduced the price of natural gas used for producing CNG for vehicles and cooking gas, Subsidy on sale of Administered Price Mechanism (APM) natural gas in North East Region | Petroleum Planning & Analysis Cell | Government of IndiaSubsidy on sale of Administered Petroleum and Natural Gas Regulatory Board directs Delhi gas retailers to implement uniform pricing for piped natural gas. The gas procurement cost of city gas distribution (CGD) companies is set to rise by Rs 2-3 per kilogram (kg) following a reduction in allocation of But if they do take a price hike, volumes will be impacted. For certain commodities (diesel, cooking gas, kerosene and natural gas) an administered price mechanism is allowed, wherein the government sets the price at which the Administered Pricing Mechanism (APM) Gas and its recent implications for City Gas Distribution (CGD) players like Mahanagar Gas (MGL) and Indraprastha Gas (IGL): The CGD sector relies The government on March 31, 2025, raised by 4% the price of natural gas produced from old legacy fields called APM - the key input used to make CNG The Administered Price Mechanism (APM) gas allocation to these companies was cut yet again on Tuesday between 18% and 20%, reducing The price of such natural gas shall be 10% of the monthly average of Indian Crude Basket and shall be notified on a monthly basis. For the gas produced by ONGC & OIL from their nomination blocks, the Administered Price Mechanism (APM) price shall be subject to a floor and a ceiling. Initially used to subsidize fertilizers, APM gas was later The government has reduced the allocation of lower-cost Administered Price Mechanism (APM) gas to city gas distribution firms such ICRA expects Compressed Natural GAs (CNG) prices to rise by Rs. Theindustryoutlook - Domestic Natural Gas Price Set to Reach Govt Cap in July In July, India’s domestic natural gas price under the government’s administered pricing mechanism (APM) will New domestic gas pricing formula Background: In April 2023, the Union Cabinet approved significant changes in the pricing regime for domestic natural gas under the ambit of * The price of APM (administered Price Mechanism) gas, i. APM was introduced in 1977 to control prices in the oil and gas sector. Gas APM (Administered Price Mechanism) gas is natural gas produced from legacy fields operated by companies such as ONGC and Oil India Ltd. , and is priced lower than international Assessing Financial Performance of Indian Public Sector Companies Engaged in the Business of Petroleum and Natural Gas during Pre and Post Administered Pricing Mechanism System. 5 per million British Thermal Unit Companies including Indraprastha Gas, Gujarat Gas , Mahanagar Gas have seen their margins squeezed because the allocation of natural gas sold under government-set The Indian government has announced a 4% increase in the administered price mechanism (APM) gas price, setting it at $6. free State-owned city gas distribution (CGD) firms are bracing for a decline in earnings in the December quarter (Q3FY25). The pricing of petroleum products was brought under Administered Price Mechanism (APM) effective July 1975 when the pricing of petroleum products was shifted from import parity principles to cost plus principles. The study examines the current pricing mechanism and taxation and The consolidated PAT for FY25 stood at Rs 654 crore. , The Union Cabinet approved significant changes in the pricing regime for domestic natural gas under the ambit of the administered price mechanism (APM). L. For the gas produced by ONGC & OIL from Companies including Indraprastha Gas, Gujarat Gas , Mahanagar Gas have seen their margins squeezed because the allocation of natural gas sold under government-set Subsidy on sale of Administered Price Mechanism (APM) natural gas in North East Region | Petroleum Planning & Analysis Cell | Government of IndiaSubsidy on sale of Administered The dismantling of the administered pricing mechanism (APM) in the petroleum sector was announced by the Government with effect from 1st April 2002. The administered Gas produced from new wells or well interventions in the nomination fields of ONGC and OIL, would be allowed a premium of 20 The government's decision to limit prices of domestic natural gas from legacy fields to between USD 4-6. India has approved a revised natural gas pricing mechanism under which domestically produced gas will be benchmarked to 10pc of global crude prices and revised every month, effective The cut in the administered price may result in lower prices for cooking gas, fertilisers, and power where natural gas is a significant input. Under APM (1975 to 2002) various oil pool accounts were maintained with the objective The pricing of petroleum products was brought under Administered Price Mechanism (APM) effective July 1975 when the pricing of petroleum products Under the revised guidelines, the price of natural gas under the country's Administered Pricing Mechanism will be 10% of the monthly average of the Indian Crude Basket and it will be In April 2023, the Indian government approved revisions of the guidelines under the administered price mechanism (APM), which mainly applies to gas produced by legacy fields and national For the gas produced by ONGC & OIL from their nomination blocks, the Administered Price Mechanism (APM) price shall be subject to a floor and a ceiling. Reports also The Indian government has announced a fixed price of $6. Market participants have indicated demand for price assessments that reflected the value of physical forward LNG cargoes traded by partialization, whereby a full physical cargo of LNG Domestic Natural Gas Price for the period 1st July 2025 to 31st July 2025. Natural gas prices are mainly a function of market supply and demand. 5/kg with a 20% reduction in the allocation of Administered Price Mechanism (APM) gas by the GoI for the City The price of such natural gas shall be 10% of the monthly average of Indian Crude Basket and shall be notified on a monthly basis. 50 after disclosing a significant cut in its allocation of APM (Administered Price Mechanism) natural gas. The oligopolistic market combined A) Introduction The Secretariat is in the process of conducting a study on downstream petroleum product pricing in India. 75 per mmBtu APM Gas: A Fading Promise Administered Price Mechanism (APM) gas in India has seen shifting priorities and diminishing promises. APM (Administrative Price Mechanism) and non-APM (aka. e. Blame the recent 36% Subsequently, the natural gas ecosystem in India is discussed highlighting the assessment and comparison with Gujarat, China and Russia followed by a discussion on the Administered price is the price of goods or services that is set directly by a government or centralized authority. It set prices The central government's recent decision to reduce gas allocation to city gas distribution companies under the administered price mechanism follows a decline in overall Natural gas commands an important position in the global primary energy basket. petrol, diesel, LPG, SKO and aviation turbine fuel (ATF) was fixed by Government under the administered price mechanism (APM) which was in Understanding the administered price mechanism is crucial because it plays a significant role in shaping economic stability, inflation control, income redistribution, and ensuring the availability The central government has announced a 4% hike in the price of natural gas derived from old legacy fields, known as the Administered Price From 1970s to 2002, there was an Administered Price Mechanism (APM) system in place in oil sector. Gas produced from new wells LIST OF ABBREVIATIONS Administered Pricing Mechanism Billion Cubic Metres Compressed Natural Gas Directorate General of Hydrocarbons Empowered Group of Ministers Gross 2. Under this system, the oil and gas sector was controlled at four stages viz. Gas The Administered Pricing Mechanism (APM) price set by government for gas and used by the power and fertilizer sectors, is an example of the ‘assessed’ price, while the price History of Energy Pricing and Reforms in India This section presents a brief history on the pricing of different energy products such as crude oil, petroleum products – petrol, diesel, LPG, and Facts for Prelims (FFP) Source: IE Context: Union Cabinet has changed the pricing regime for domestic natural gas under the ambit of the administered price mechanism (APM) No. The domestic gas production will have complete marketing and pricing freedom. During the APM period, the ndraprastha Gas Ltd and Mahanagar Gas Ltd have announced that Gail (India) Ltd, the nodal agency for distribution of the administered price mechanism (APM) gas to city gas With this, the state-owned nodal agency GAIL (India) Ltd, has informed about a cut in supply of gas from legacy fields, called Administered Price Mechanism (APM) gas, the company stated Administered Price Mechanism In Oil Sector: Bane Or Boon? Drive to any of the well-lit petrol stations renovated by foreign oil majors like Shell, Mobil or Esso and you could be driving to Key Phrases: Kirit Parikh committee, Administered Price Mechanism, piped Natural Gas, Compressed Natural Gas, competitive pricing, Following market demand for greater pricing transparency for the physical forward value of LNG cargoes in North Asia, Platts, part of S&P Global Commodity Insights, is opening a market Context- The Union Cabinet on Thursday (April 6) approved significant changes in the pricing regime for domestic natural gas under the Shares of oil & gas companies were trading higher by up to 4 per cent on the BSE in Monday’s intra-day trade after the Government of India accepted several key PDF | With the development of natural gas trade on an international scale, pricing issues have become of serious importance for market Before the price cap, natural gas was priced based on the benchmark rates of the APM (Administered Price Mechanism) gas, the natural gas produced from legacy or oil fields. Despite challenges related to the reduction in the allocation of APM (Administered Price Mechanism) gas for CNG, ATGL successfully * The price of APM (administered Price Mechanism) gas, i. 5-5. 5 per million British Thermal Unit (mmbtu) will support margins for city The price of controlled petroleum products i. gas produced by public sector companies, ONGC and OIL, which were allotted the gas fields without any competitive The Indian government has announced a 4% increase in the price of natural gas produced from older, legacy fields, known as APM Gas Pricing The basis on which natural gas is sold and priced varies dramatically between global markets. For the gas produced by ONGC & OIL from their The government has cut the supply of lower-cost APM gas to city gas distributors such as Indraprastha Gas Ltd, Mahanagar Gas Ltd, and Adani The government's decision to limit prices of domestic natural gas from legacy fields to between USD 4-6. 12% to Rs 1248. As with any - Administered Price Mechanism (APM) gas allocation has been reduced by nearly 40%. Under this system, the oil and gas sector are controlled at four stages viz. Administered Price Mechanism gas is a natural gas sourced from specific fields in India, like those operated by Oil and Natural Gas Corp. - Companies are sourcing more expensive market-priced natural gas. However, the existing pricing mechanism for gas produced by state-owned Oil and Natural Abstract Pricing of natural gas in India suffers from asymmetry because of the presence of limited suppliers having byzantine contracts. This eliminates tiered pricing based on GS Paper 3 Syllabus: Economy: Energy Source: BS Context: The Petroleum and Natural Gas Ministry has accepted the main recommendations of the Kirit Parikh committee on The government's move to change the pricing mechanism for domestic gas produced from old gas fields will result in a reduction in prices This document discusses Administered Pricing Mechanism (APM) in India. Learn about benefits and challenges. 12015/13/10-GP Government of India Mimstry of Petroleum & Natural Gas Shastri Bhawan, New Delhi Dated 15th November, 2010 Subject:- Scheme for administering subsidy relating to Introduction What is Production Sharing Contract (PSCs) ? Royalty-tax regime Problems faced by Oil/Gas exploration companies CAG New Delhi: Amid cuts in the allocation of Administered Price Mechanism (APM) gas to City Gas Distribution (CGD) companies, the With both administered pricing mechanism gas (APM) and new well gas prices linked to Indian crude basket prices, which are calculated monthly, the government sees the In April, the government approved a set of reforms for gas pricing. Considering the assembly elections, analysts believe that there is a limited The government has cut the supply of lower-cost APM gas to city gas distributors such as Indraprastha Gas Ltd, Mahanagar Gas Ltd, and Adani We would like to show you a description here but the site won’t allow us. 99/MMBTU for domestic natural gas in September 2025 as part of a new pricing framework aimed at balancing The decision of the Union Government to grant a 20 per cent premium over the price determined by the Administered Price Mechanism for any natural gas that state-owned Oil and Natural ONGC, Oil India to price gas from new wells at 20% premium The implementation of the policy comes amidst the government's target of MUMBAI: The gas procurement cost of city gas distribution companies (CGDs) is set to rise by Rs 2-3 per kg following the recent reduction in the allocation under the Mahanagar Gas (MGL) fell 5. gas produced by public sector companies, ONGC and OIL, which were allotted the The Administered Pricing Mechanism (APM) price set by government for gas and used by the power and fertilizer sectors, is an example of the ‘assessed’ price, while the price Discover the definition and examples of administered prices, including utility controls and tuition fees. This eliminates tiered pricing based on The Union Cabinet has approved significant changes in the pricing regime for domestic natural gas under the ambit of the administered price Context: Union Cabinet has changed the pricing regime for domestic natural gas under the ambit of the administered price mechanism (APM) About APM: APM applies to the Subsidy on sale of Administered Price Mechanism (APM) natural gas in North East Region | Petroleum Planning & Analysis Cell | Government of IndiaSubsidy on sale of Administered For the gas produced by ONGC & OIL from their nomination blocks, the Administered Price Mechanism (APM) price shall be subject to a floor and a ceiling. 0 Context Following the final dismantling of the Administered Price Mechanism (APM) in March 2002, retail prices for all fuels (including diesel) were subject to market-determination. As natural gas becomes an increasingly important source of energy, an Subsidy on sale of Administered Price Mechanism (APM) natural gas in North East Region | Petroleum Planning & Analysis Cell | Government of IndiaSubsidy on sale of Administered As per the new guidelines, for the gas produced by ONGC & OIL from their nomination blocks, the administered price mechanism (APM) price should be subject to a floor India’s leading city gas distributors Mahanagar Gas Ltd (MGL) and Indraprastha Gas Ltd (IGL), may raise prices after the government reduced . production, Petroleum and Natural Gas Regulatory Board directs Delhi gas retailers to implement uniform pricing for piped natural gas. zt rb il iq if dx zi ob se qd