Parikh panel moots lower price band for APM gas; pricing freedom from 2027

The Kirit Parikh panel to review natural gas prices in India has recommended a price band of $4-6.50/unit for gas from old legacy fields, which account for over 70% of the domestic output, and ushering in of fully market-determined rates by January 2027. It proposed price escalation for the old fields, with an increase of $0.5 per metric million British thermal unit (mmBtu) annually with no change in pricing for the first two years or a $0.25 per mmBtu annually escalation for five years.