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Gas Prices Plummet for Industries Amid Supply Fears
15 Mar
Summary
- Adani Total Gas reduces industrial gas price significantly.
- Lower upstream gas costs are driving the price reduction.
- Supply issues in West Asia previously caused consumption curbs.
Adani Total Gas has announced a significant price reduction for excess natural gas supplied to industrial customers. Effective March 16, 2026, the price has been lowered from Rs 119.90 per standard cubic metre (SCM) to Rs 82.95 SCM. This adjustment reflects the current decrease in upstream gas costs.
The company stated the revision aims to transfer the benefits of reduced upstream prices to consumers. This move comes after previous supply disruptions stemming from the West Asia crisis, which had compelled industrial users to curtail their gas consumption. During those periods, spot market rates were applied to consumption exceeding a 40% threshold, and these rates remain unchanged.
Approximately 70% of Adani Total Gas's volume is sourced domestically for CNG and piped cooking gas (PNG) users, whose prices remain unaffected. The remaining 30% is imported LNG, primarily supplied to commercial and industrial sectors. The government had previously prioritized domestic and CNG needs during the supply crisis.
