In good news for companies like ONGC, Oil India, India has rationalised royalty rates for oil and gas companies under the Oilfields (Regulation and Development) Act to boost growth in the upstream sector.
This comes days after Prime Minister Narendra Modi addressed the nation and urged citizens to reduce imports-linked consumption, including petrol, diesel, and cooking gas usage on the backdrop of West Asia Conflict that has resulted in the closure of Strait of Hormuz since February 28.
The blockade of Strait of Hormuz, has pushed oil price higher. Currently crude is hovering near $99.01 per barrel and Brent Crude is hovering near $105.05 per barrel.
Govt revises oil and gas royalty framework after ORD Act amendments
Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the reform in royalty is part of a decade-long effort to modernize India’s regulatory landscape by simplifying complex rules and creating a more consistent system to strengthen the country’s energy future.
The move follows the 2025 amendments to the ORD Act and Petroleum and Natural Gas Rules, under which the government introduced revised royalty rates and methodologies for crude oil, natural gas, and casing-head condensate.
Crude oil price movement after West Asia conflict
| Date/Event | Brent crude price |
| February 27, 2026 (before conflict) | $72.48 per barrel |
| After Strait of Hormuz closure | Crossed $120 per barrel |
| Current Brent crude price | Around $105.05 per barrel |
Puri calls royalty reform a ‘new era’ for oil and gas sector
Puri also called the move marks a “new era” for India’s oil and gas sector by removing long-standing inconsistencies in the royalty framework.
“In a big boost for the country’s Upstream Sector, rationalization of royalty under the ORD Act marks a new era for our Oil & Gas regimes by eliminating inconsistencies and driving growth in the upstream sector under the leadership of PM @narendramodi. This landmark decision will be a major step toward regulatory clarity,” Puri said on X.
According to the minister, the revised schedule aims to create a stable, predictable, and investor-friendly framework for India’s upstream oil and gas sector.
Crude price in 2026
Brent crude prices stood at $72.48 per barrel on February 27, before the conflict began. Crude oil prices crossed $120 per barrel at one stage and have largely remained above $100 per barrel since the West Asia conflict escalated on February 28, 2026.