Govt hikes APM gas price by 4% for April-September 2025

The Indian government has announced a 4% increase in the administered price mechanism (APM) gas price, setting it at $6.75 per mmBtu for the period between April and September 2025. This marks the first price hike since April 2023, when the gas price was last revised.

For the January-March 2025 quarter, the APM gas price was $6.50 per mmBtu. The increase follows the recommendations of the Kirit Parikh Committee, which proposed a 4% hike from the third year of implementation.

The Kirit Parikh Committee was set up in 2022 to review India’s natural gas pricing mechanism. Its recommendations aimed to align domestic gas prices with market trends, reduce the consumer burden, and ensure the long-term sustainability of the sector. The panel suggested a gradual price increase, with a 4% rise starting in the third year.

The APM gas price increase is expected to positively impact the stocks of gas producers such as ONGC, OIL, and GAIL, as well as natural gas distributors like IGL, MGL, and Gujarat Gas.

However, companies that rely heavily on natural gas as an input, such as fertilizer and power generation firms, may face increased costs, potentially affecting their profitability unless they can pass on these cost increases to consumers.