Higher gas prices set to lift E&P earnings

Mettis Global reported that gas at the wellhead for multiple fields rose by as much as 15.8% for July to December 2026, citing Topline Securities. The brokerage expects prices for companies working under the Petroleum Policy 2012 to climb roughly 10 to 11%, driven by the sliding benefit mechanism in that policy. Exploration and production firms are therefore set to see a boost to their earnings.

This change followed a steep climb in global crude rates. The Arab Light crude average reached $92.2 per barrel in January to June 2026, up from $68.4 in the previous six months, a gain of around 35%. Under the twice-yearly pricing rule, that elevated average passes through to gas rates for July to December 2026.

Topline Research indicated the change works out to an average rise of about 8 to 10% across the notified fields, a positive for E&P earnings even though its forecasts already reflected it. Chachar Lease Area recorded the sharpest increase, as its price climbed from $1.75 to $2.02 per mmbtu, while Bhit and Badhra in Kirthar rose 15.4%. Some field notifications have been issued and the rest are expected to follow, with slight differences possible due to varying six-month oil price windows.