Energy group Reliance Industries' five-year gas supply agreements with sectors including fertiliser makers and power producers expire at midnight, requiring buyers to sign new contracts for supplies from its D6 block in the Krishna Godavari basin.
"Reliance will continue to supply gas at $4.20 (per million British thermal units). The Fertiliser Association of India (FAI) and Reliance will sit together and finalise the (next contracts) agreements as early as possible," Fertiliser Secretary Shaktikanta Das told reporters on Monday.
The Cabinet last year approved a formula that linked prices of locally produced gas with global benchmarks, which would have nearly doubled gas prices from current levels from Tuesday.
The Election Commission asked the government to defer the price increase until the completion of the five-week general election in the middle of May.
"We will pay the marketing margins and gas prices from the date as may be notified by the government," Satish Chander, director general of FAI, said.He said he hoped the deadlock over the contracts would end soon.