The natural gas pricing scenario in India is complex and heterogeneous in nature. There are wide varieties of gas price in the country.
At present, there are broadly two pricing regimes for gas in the country – Gas priced under APM and non-APM or free market gas. The price of APM gas is set by the Government/PPAC (Petroleum Planning & Analysis Cell). As regards non-APM/free market gas, this could also be broadly divided into two categories, namely, domestically produced gas from JV (Joint Venture) fields and imported LNG (Liquefied Natural Gas). The pricing of JV gas is governed in terms of the Production Sharing Contract provisions, while the price of LNG imported under term contracts is governed by the Special Purchase Agreement between the LNG seller and the buyer, the spot cargoes are purchased on mutually agreeable commercial terms.