From July 1, natural gas price hiked by 7.5%; check out latest rate per mmbtu

Natural Gas Price Hike July 1 News: The central government’s oil ministry increased the price of domestically produced natural gas for July 2025 to $6.89 per mmbtu on a gross calorific value (GCV) basis. The price, effective July 1, marks a 7.5 per cent from the price of $6.41 per mmbtu last month.

Currently, the government reviews the domestic natural gas rate on a monthly basis, announcing any revisions at the onset of a new month. It also sets the ceiling price for gas produced from difficult fields.

Natural Gas Price for July 2025

For the period from July 1 to July 31, 2025, the price of $6.89 per mmbtu will be applicable, according to an official notification.

A ceiling of $6.75 per mmbtu will be applicable to gas produced by energy PSUs ONGC and OIL India Ltd.

The new rates were announced by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas.

“The price of Domestic Natural Gas for the period 1 July 2025 to 31 July 2025 is notified as US$ 6.89 /MMBTU on Gross Calorific Value (GCV) basis… Further, in accordance with Para 4 of the said notification, for the gas produced by ONGC/OIL from their nomination fields, the above-mentioned APM price shall be subject to a ceiling of US$ 6.75/MMBTU on GCV basis for the same period,” the PPAC wrote in a communication to the Director General of the Directorate General of Hydrocarbons (DGH), and to the CMDs of ONGC and OIL India.

Under the current system of domestic gas pricing, the rate is determined based on the product’s heat value in gross calorific value terms, including the heat from condensing the water vapor produced during combustion.

How new rate may impact ONGC, OIL India and consumers

The latest revision in the domestically produced gas is set to lead to higher earnings for ONGC and OIL India.

On the other hand, the higher benchmark may lead to higher rates for industrial buyers and companies operating in areas such as fertiliser and city gas distribution.