Hydrogen prices in India stayed stable for the week ending late July 2025, as steady refinery uptake and industrial use balanced mild feedstock and energy cost pressures. Stable natural gas pricing under MoPNG caps and predictable crude benchmarks kept hydrogen production costs steady. Refining activity, supported by rising petroleum output, anchored hydrogen demand, while industrial consumption in steel, electronics, and chemicals held moderate levels. With monsoon delays expected to ease and infrastructure-linked demand projected to grow in H2 2025, hydrogen prices are likely to remain range-bound in the near term, underpinned by balanced supply and steady fundamentals.
Indian hydrogen prices remained firm at end July 2025, with well-balanced fundamentals on supply, feedstock, and demand keeping the market range bound. While upstream costs of natural gas and crude dented, adequate availability and consistent refinery runs kept hydrogen offers firm, indicating stable domestic demand in both refining and industrial uses.
Hydrogen production economics were stable as natural gas, the major feedstock for grey hydrogen, remained firm at the Ministry of Petroleum and Natural Gas (MoPNG) notified price of USD 6.89/MMBTU (GCV basis) for July 2025, with limits of USD 6.75/MMBTU for ONGC and OIL nomination fields limiting cost rise. While crude-linked costs put mild upward pressure, Indian refiners ran 23.1 million metric tons (MMT) of crude in May, a 0.4% year-on-year increase, countering a 1.7% YoY fall in domestic crude and condensate production. Refining demand for hydrogen remained strong as desulfurization and fuel blending requirements held up despite softer crude imports, down 3.3% YoY, and firmer petroleum exports, up 7% YoY in May.
Hydrogen use in India's industrial and infrastructure spaces also stayed flat, albeit without significant acceleration. Refining and petrochemicals underpinned hydrogen demand, backed by a 1% year-over-year increase in petroleum product production to 24.3 MMT in May, to provide stable takeoff. Industrial hydrogen usage from steel, specialty chemicals, and electronics maintained moderate clip, as projects moved at run-of-the-mill pace without instigating procurement spikes.
India's hydrogen market was supported by stable upstream conditions with Brent crude, natural gas, and methanol benchmarks having volatility and underpinning stable production margins. Refineries, the biggest consumers of hydrogen, kept buying spot as well as contracted volumes, with no dramatic disruptions in utilization and drawdowns. Industrial customers, on the other hand, emphasized short-term procurement strategies, preferring liquidity as macroeconomic conditions and export-linked demand were guarded.
In the near term, offers are seen staying firm due to balanced supply, capped natural gas prices, and stable demand fundamentals. Prices are anticipated to stay range-bound. Looking forward, hydrogen demand is projected to increase steadily during the second half of 2025 as government-supported infrastructure projects and fiscal expenditure—deferred by seasonal monsoon considerations—pick pace. Nonetheless, prices are seen staying range-bound.
As hydrogen remains the key feedstock for Indian industry and refining activity, its firm pricing reflects a market rooted in refinery-driven behavior and consistent upstream dynamics, as infrastructure-related consumption starts to gather momentum for the latter part of 2025. The prices of Hydrogen in the Indian market were quoted at USD 342 per 140m³ Ex-Mumbai.
