Indian gas prices fall 18% in Dec as global markets remain weak: IGX

New Delhi: Greater supply, a mild winter in Europe and muted demand throughout Asian markets all contributed to the decline in Indian gas prices in December 2025, which was consistent with worldwide patterns, according to data supplied by the Indian Gas Exchange (IGX).

The IGX benchmark price index, GIXI, averaged Rs 994 or $11 per MMBtu in December 2025, registering an 18 per cent decline on a year-on-year basis.

International gas prices also remained under pressure during the month. Europe’s TTF benchmark fell to $9.9 per MMBtu, down 17 per cent month-on-month and 35 per cent year-on-year, while the WIM-Ex Dahej price declined to $10.6 per MMBtu, lower by 11 per cent month-on-month and 32 per cent year-on-year. In the US, Henry Hub prices stood at $4.5 per MMBtu, unchanged from the previous month but 30 per cent higher compared to a year earlier.

Despite the softer pricing environment, trading volumes on IGX recorded strong growth during the current financial year. The exchange traded a cumulative volume of 58.2 million MMBtu during the first nine months of FY26, marking a 46 per cent increase over the corresponding period last year.

During the third quarter of FY26, IGX recorded traded volumes of 17.5 million MMBtu, equivalent to 441 million standard cubic metres, reflecting an 8 per cent year-on-year increase. Of the total volume traded during the quarter, around 69 per cent comprised free-market gas, while 31 per cent was domestic high-pressure high-temperature (HPHT) gas traded at the administered ceiling price.

A total of 569 trades were executed in Q3FY26, with monthly contracts emerging as the most liquid product, accounting for 48 per cent of total volumes. Dahej was the most active delivery point during the quarter, followed by Mhaskal.

Every month, IGX traded 5.6 million MMBtu, or 142 million standard cubic metres, in December 2025, reflecting a marginal decline of 2 per cent year-on-year. The decline was attributed mainly to a reduction in domestic HPHT gas volumes. Free-market gas accounted for around 71 per cent of the traded volume during the month, while the remaining 29 per cent comprised domestic HPHT gas traded at the ceiling price of Rs 875 or $9.72 per MMBtu. Nearly 10 million standard cubic metres of domestic gas with pricing freedom were traded by producers at delivery points, including Bokaro (CBM), KG Basin and Hazira-ONGC.

Regional price differences were observed across the country. GIXI-West averaged Rs 996 or $11.1 per MMBtu, broadly in line with the all-India benchmark, while GIXI-East and GIXI-South were lower by about 5 per cent and 11 per cent, respectively, due to transmission and tax differentials. The GIXI-Dahej index stood at Rs 975 or $10.8 per MMBtu in December, about 3 per cent lower than the previous month, and remained comparable to the WIM-Ex Dahej settled price.