Adani Total Gas Limited has announced a reduction in the price of excess natural gas supplied to select industrial customers, following a decline in upstream gas costs. The move is intended to pass on cost benefits to customers while navigating ongoing supply disruptions in global energy markets.
Revised Gas Pricing for Industrial Consumers
Effective March 16, 2026, the company has reduced the price of excess natural gas supplied to industrial users from ₹119.90 per standard cubic metre (SCM) to ₹82.95 per SCM.
The revision reflects lower upstream gas prices even as global supply chains remain under pressure due to geopolitical tensions affecting energy shipments.
Supply Disruptions and Consumption Limits
Energy supply disruptions linked to geopolitical developments in the Strait of Hormuz have resulted in interruptions to certain LNG shipments.
In response to these constraints, Adani Total Gas had earlier requested its commercial and industrial customers to restrict gas consumption to 40% of their contracted volumes to ensure equitable distribution during the supply shortage.
The revised price applies specifically to gas consumption beyond this designated threshold.
No Change for Domestic and CNG Customers
The company clarified that tariffs for domestic piped natural gas (PNG) consumers and compressed natural gas (CNG) users remain unchanged.
Approximately 70% of the company’s gas supply is allocated to household PNG users and the CNG segment. This portion is largely sourced from domestic gas supplies, which have not been impacted by recent price changes.
Market Adjustments and Resource Allocation
The pricing adjustment is part of broader market responses to evolving supply conditions in the global energy market. With heightened tensions in West Asia affecting LNG flows, authorities in India have prioritized gas allocation toward essential sectors.
The remaining 30% of the company’s gas supply, which relies on imported LNG, primarily serves industrial customers and is therefore more sensitive to global price fluctuations.
Summary
- Adani Total Gas reduced excess industrial gas prices to ₹82.95 per SCM from ₹119.90 per SCM
- Price cut effective March 16, 2026
- Decision follows decline in upstream gas costs despite global supply disruptions
- Industrial customers previously asked to limit usage to 40% of contracted volumes
- Domestic PNG and CNG prices remain unchanged
- Around 70% of supply serves domestic and transport segments, while 30% imported LNG is largely used by industries
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.