Adani Total Gas (ATGL) implemented a dramatic price hike for its industrial customers, with some rates effectively tripling due to the escalating conflict in the Middle East.
The move is a direct consequence of the “near-halt” of transit through the Strait of Hormuz, which has severely restricted global supplies of Liquefied Natural Gas (LNG).
The 3x Industrial Price Hike
The sharpest increase applies to “excess” gas consumption by industrial clients.
- New Rate: ₹119 per standard cubic metre (SCM).
- Previous Rate: Approximately ₹40 per SCM.
- Threshold: This 3x rate applies to any gas consumed above 40% of the daily contract quantity (DCQ).
- Reasoning: ATGL cited “upstream gas curtailment” and “operational constraints” caused by the geopolitical developments impacting LNG supply routes.
Impact on CNG and Domestic PNG
While the 3x hike is targeted at industrial “over-consumption,” the broader market remains under pressure.
| Segment | Status (as of March 5, 2026) |
| Industrial (Excess) | Hiked to ₹119/SCM (Up from ~₹40). |
| Industrial (Contracted) | Seeing “calibrated” increases based on rising procurement costs. |
| CNG (Transport) | Rates remain volatile; the company previously cut prices by ₹4 in January, but those gains are being offset by current supply shocks. |
| Domestic PNG (Home) | Prices are being “managed” to protect consumer interest, though analysts expect some pass-through if the Hormuz blockade continues. |
Market & Stock Reaction
The news of the supply crunch and price hikes has weighed heavily on Adani Total Gas’s valuation this week.
- Stock Performance: Shares of ATGL hit a fresh 52-week low of ₹453.50 on March 2. As of March 5, the stock is trading around ₹480, down roughly 12% for the week.
- Supply Vulnerability: Investors are concerned about ATGL’s reliance on imported RLNG (Regasified LNG). With the government’s domestic APM gas allocation for the city gas sector sitting at only 41%, the company is forced to bridge the gap with expensive, spot-market gas that is currently difficult to transport.
The “Hormuz” Bottleneck
The price hike is a localized symptom of a global crisis. The Strait of Hormuz carries roughly 20% of the world’s LNG. With tanker traffic reportedly down 92% due to Iranian and retaliatory strikes, Indian gas distributors are scrambling to find alternative sources, such as NWG (New Well Gas) and HPHT (High Pressure High Temperature) gas, both of which carry significantly higher price tags.
