Page 47 - FIPI - Policy & Economic Report May 2026

May 2026 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Natural Gas Market

Natural Gas Price – Monthly Review

? Natural Gas spot prices at the US Henry Hub benchmark averaged $2.77 per million British thermal
units (MMBtu) in April 2026. Henry Hub natural gas prices dropped for a third consecutive month
in April, falling ~9.0%, m-o-m.Muted domestic demand amid the shoulder season, coupled with
high storage levels, outweighed higher LNG exports, dragging down prices. According to data from
the US Energy Information Administration (EIA), average weekly storage rose by 9.3%, m-o-m, in
the period. Prices were down by ~19%, y-o-y.

? Natural gas spot price at the Title Transfer Facility (TTF) in the Netherlands in Europe traded at an
average of $15.41 per MMBtu.The average Title Transfer Facility (TTF) price declined by ~14%,
m-o-m, in April. Prices fell as mild weather sharply reduced near-term consumption risk.
Moreover, storage levels improved slightly amid the storage injection season. According to data
from Gas Infrastructure Europe, EU storage levels rose to 32.5% as of the end of April, up from
28.1% the previous month, representing a 4.4-percentage-point gain, m-o-m. Prices were up by
33.0%, y-o-y, underscoring that concerns over supply risk remain elevated.

? Japan Liquefied Natural Gas Import Price averaged at $11.67 per MMBtu for April 2026. There is
a change of 2.2% from last month and -8.0% from one year ago.

? The Union Cabinet has approved a new formula for pricing of natural gas and imposed cap or
ceiling price on the same. Natural gas produced from legacy or old fields, known as APM gas, will
now be indexed to crude oil prices. From April 1 2023, APM gas will be priced at 10% of the price
of basket of crude oil that India imports. The rate such arrived at however will be capped at US$
6.50 per MMBTU. The price such arrived at will also have a floor of US$4 per MMBTU. As per
notification dated 31st March 2025, the APM gas price has been raised to US$ 6.75 per MMBTU,
up from US$ 6.50 per MMBTU. Further, as per notification dated 31st March 2026, the APM gas
price has been raised to US$ 7.00 per MMBTU.

? Further, in accordance with MoP&NG, Govt. of India, pricing freedom for gas being produced from
discoveries in Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, the gas
price ceiling for the period 1st April, 2023 - 30th September, 2023 was notified as US$
12.12/MMBTU on Gross Calorific Value (GCV) basis as per notification dated 31st March, 2023. As
per notification dated 30th September 2023, Gas price ceiling was further revised for the period
1st October, 2023 – 31st March, 2024 was notified as US$9.96/MMBTU on Gross Calorific Value
(GCV) basis. Prices were further revised for the period 1st April, 2024 – 30th September, 2024 was
notified as US$9.87/MMBTU on Gross Calorific Value (GCV) basis as per notification dated 31st
March 2024. Accordingly, for the period 1st October, 2024 – 31st March, 2025 gas price ceiling
was further revised as US$10.16/MMBTU on Gross Calorific Value (GCV) basis as per notification
dated 30th September 2024. Now, as per notification dated 31st March 2025, Gas price ceiling
was further revised for the period 1st April, 2025 – 30th September, 2025 was notified as

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