The Indian government is evaluating the implementation of a price cap on ONGC's new well gas, which has seen a significant increase of 58%, reaching $12.91 per million British thermal units (mmbtu). This rise is attributed to the recent surge in crude oil prices, which has also pushed the notional domestic gas price to $10.76 per mmbtu, although the effective price remains capped at $7 for April. The new well gas category, introduced in 2023, allows ONGC to charge a 20% premium over the domestic gas price for output from new wells. City gas distributors, who are the primary consumers of this gas, have expressed concerns over the escalating costs and are advocating for a price adjustment to $8.4 per mmbtu. The absence of a price cap on new well gas has led to its current high pricing, prompting the government to consider regulatory measures to address these distributor concerns.