Adani Total Gas Keeps CNG & Domestic PNG Prices Unchanged, Industrial Users Asked To Cut Gas Consumption To 40% Amid West Asia Supply Disruptions

Mumbai: Adani Total Gas Ltd (ATGL) has decided not to increase the prices of compressed natural gas (CNG) and piped natural gas supplied to households (PNG-domestic), even as global gas supply challenges continue due to the West Asia crisis.

According to company officials, the decision is aimed at protecting vehicle owners and household consumers from sudden price increases during a period of global energy uncertainty.

Majority of Gas Used for Households and Transport

Around 70 percent of ATGL’s gas supply comes from domestic sources. This gas is mainly used for CNG vehicles and PNG connections in homes. Since this supply remains stable, prices for these two segments have not been changed.

The remaining 30 percent of gas is imported in the form of liquefied natural gas (LNG). This imported gas is mostly supplied to commercial and industrial users.

Supply Curbs for Industrial Consumers

Due to the ongoing crisis in West Asia, movement of ships through the Strait of Hormuz has been affected. This narrow sea route is important for India’s imports of crude oil and LNG.

Because of this disruption, ATGL has asked some large commercial and industrial customers to reduce their gas consumption to 40 percent of their contracted volumes.

These customers will continue to receive gas at their contracted price for usage up to the 40 percent limit.

Higher Prices for Additional Gas Usage

The average contracted price for industrial users is around ₹40 per standard cubic meter (scm). However, if customers use gas beyond the 40 percent limit, they will be charged based on spot market prices.

Currently, the spot market rate is much higher due to supply shortages. Customers using gas above the allowed limit may have to pay about ₹119 per scm.

This increase reflects the higher cost of sourcing gas from alternative markets.

LNG Prices Have More Than Doubled

The global LNG spot price has increased sharply due to supply disruptions. Spot prices are now around USD 24–25 per million British thermal units (mmBtu), compared with around USD 10 per mmBtu earlier.

Despite these challenges, the company said it is making efforts to maintain steady gas supplies while balancing supply constraints and protecting consumer interests.