Adani Total Gas Ltd (ATGL) implemented a revision in its Compressed Natural Gas (CNG) prices on October 23, 2026, citing a substantial increase in natural gas procurement costs. The company stated that this 'calibrated' price adjustment was necessary to partially absorb the rising expenses while ensuring a consistent supply to consumers.
Following the announcement, Adani Total Gas shares, which had dipped to a day's low of Rs 520.80 apiece, recovered slightly to trade at Rs 529.30 per share. Despite this recovery, the stock remained down 4.4 percent on the day.
Reasons Behind the Price Hike
ATGL attributed the price increase to several factors impacting its sourcing costs:
- Elevated Global Gas Prices: Global spot Liquefied Natural Gas (LNG) prices have surged significantly, climbing from approximately $10-12 per million British thermal units (MMBtu) in February 2026 to around $30 per MMBtu.
- Reduced Domestic Gas Availability: The company highlighted a decline in New Well Gas (NWG) allocation and availability, which has decreased the proportion of competitively priced domestic gas accessible for meeting CNG demand.
- Supply Curtailments: Ongoing curtailments and reductions from upstream suppliers have created a sourcing gap, necessitating reliance on more expensive alternative gas sources.
- Revised HPHT Allocation: An Office Memorandum dated October 19, 2026, further reduced the volume of High-Pressure, High-Temperature (HPHT) gas available for priority-sector consumption, adding pressure on domestic gas supply for CNG.
Adani Total Gas emphasized that the overall cost of gas sourcing had increased significantly due to these combined factors, particularly affecting the weighted-average gas cost for its CNG segment.
Company's Stance and Market Impact
In a statement, ATGL affirmed its commitment to minimizing the impact on consumers while maintaining uninterrupted CNG availability. The company reiterated that CNG remains an economical and environmentally friendly fuel choice despite the revisions.
Earlier, during its Q2 results announcement, Adani Total Gas had already flagged concerns over rising Brent crude and spot gas prices, exacerbated by currency depreciation, contributing to increased gas costs. The company noted that it continues to leverage a diversified sourcing portfolio to meet demand requirements, even after the withdrawal of temporary pooled gas support effective July 5, 2026.