Adani Total Gas Ltd (ATGL), a joint venture between the Adani Group and France’s TotalEnergies, has announced a significant reduction in the price of “excess” natural gas for its industrial customers. Effective from 06:00 AM on March 16, 2026, the rate for gas consumed beyond contracted limits has been lowered to ₹82.95 per standard cubic metre (SCM), down from the previous high of ₹119.90.
Relieving the Industrial Squeeze
The 31% price cut follows a period of intense volatility in the energy markets. While ATGL had previously raised prices and imposed consumption curbs due to global supply shocks, a recent softening in upstream costs has allowed the utility to pass on savings to the manufacturing sector.
Key details of the price revision include:
- Target Audience: Specifically for industrial clients consuming “excess gas” (volumes beyond their basic contracted allotment).
- Price Drop: A reduction of ₹36.95 per SCM.
- Rationale: ATGL cited “softened upstream gas prices” and the government’s move to pool imported LNG prices to mitigate the domestic impact of the ongoing US-Iran conflict.
The Conflict & Supply Chain Dynamics
The price adjustment is a direct response to the maritime instability in the Strait of Hormuz. Following the halt of several LNG shipments due to regional warfare, ATGL had previously asked industrial and commercial users to curtail their consumption to 40% of their contracted volumes.
| Segment | Volume Source | Pricing Status |
| CNG & Domestic PNG | ~70% (Domestic) | Unchanged (Prioritized by Govt) |
| Industrial & Commercial | ~30% (Imported LNG) | Excess Gas Price Cut |
| Contracted Industrial | Fixed/Variable | Unchanged (~₹40 per SCM avg) |
Government Intervention: The 2026 Supply Order
The price cut coincides with the Natural Gas (Supply Regulation) Order, 2026, issued by the Indian government last week. This order prioritizes domestic gas for essential sectors—households and transport—while coordinating with GAIL (India) Ltd to manage the 80% supply mandate for industrial customers during the crisis.
Market Reaction: Shares Dip
Despite the positive news for industrial consumers, ATGL shares fell nearly 12% over the last two trading sessions. Analysts attribute this to profit-booking following a massive 30% rally between March 10–12 and concerns over potential margin compression as the company absorbs higher logistics costs from the West Asia region.
