Adani Total Gas Shares Surge 37% in Two Days as Gas Supply Concerns Lift Gujarat Gas and MGL
City gas stocks rally as Adani Total Gas Ltd jumps 37% in two days amid global LNG supply concerns linked to Middle East tensions. Gujarat Gas Ltd and Mahanagar Gas Ltd also gain after India prioritised PNG and CNG supply under the new gas regulation order.
City gas distribution stocks such as Adani Total Gas Ltd, Gujarat Gas Ltd, and Mahanagar Gas Ltd have recorded sharp gains this week, even as the broader market remained under pressure.
The rally comes amid growing concerns over global natural gas supply disruptions linked to tensions in the Middle East and a new government order prioritising household and transport gas consumption.
Middle East Tensions Spark Gas Supply Fears in India
Trouble in the Middle East, especially near the Strait of Hormuz, has disrupted liquefied natural gas (LNG) and LPG shipments to India. Suppliers used force majeure clauses to cut deliveries, hitting industrial clients hard but leaving most homes safe.
Adani Total Gas told stock exchanges on 11 March 2026 about lower supplies from some providers due to these risks. India gets about 90% of its LPG imports from the region, so any blockade raises big shortage worries.
The government says no major fuel shortages for homes, but LPG cylinder prices have gone up by INR 60 lately. Stocks in some areas last just 1-2 days, adding to the push for quick fixes.
Natural Gas Supply Order 2026 Prioritises Households and CNG
On 9 March 2026, the Ministry of Petroleum and Natural Gas released the Natural Gas (Supply Regulation) Order, 2026. It sets clear priorities: domestic piped natural gas (PNG) and CNG for vehicles first, then LPG for cooking, followed by fertilisers and power plants.
Factories and businesses may see cuts of up to 80% from past levels to protect homes. City gas companies now focus on steady, high-margin PNG and CNG supplies.
Firms like Adani Total Gas like the change, it locks in key supplies while they handle industrial shortfalls through talks with partners.
Gas Supply & Government Prioritisation (March 2026)
| Aspect | Details | Impact on Stocks |
|---|---|---|
| Global Gas Supply | LNG shipments from Middle East disrupted due to regional tensions (Strait of Hormuz) | Raises concerns, driving city gas stocks higher |
| Government Order | Natural Gas (Supply Regulation) Order, 2026 prioritises PNG for households and CNG for vehicles | Supports steady revenue for city gas distributors |
| Industrial Gas Supply | Potential cuts of up to 80% for factories | Short-term supply reduction boosts high-margin PNG/CNG business for Adani Total Gas, Gujarat Gas, MGL |
| Household Gas Supply | No major shortages reported | Positive sentiment among investors for secure domestic supply |
| Price Adjustments | Industrial gas prices raised (Adani Total Gas ~₹119 per cubic metre) | Margins improve, boosting investor confidence |
| Trading Outlook | Tight supply expected short-term; government exploring backup imports | Likely to keep stocks active in near term |
Stock Market Rally: Adani Total Gas Up 37%, Others Follow
Adani Total Gas shares soared 18-20% to INR 567 on 11 March 2026, even with a falling Sensex. By midday 12 March, they climbed another 15% to Rs 651, a total 35-37% gain over three days.
Gujarat Gas jumped 10-12% to INR 428, riding three-day highs on big trading volumes. MGL rose 4-12%, while Indraprastha Gas (IGL) and Petronet LNG gained 1-4%.
This surge stands out against market dips, as supply fears help distributors more than heavy users. Experts say Gujarat Gas might feel more heat than MGL or IGL due to its setup, but priority rules aid all.
Current Status and Trading Outlook for Gas Stocks 2026
Midday on 12 March 2026, trading stays choppy, but Adani Total Gas keeps most gains. LPG meets 56% of demand right now, squeezing business supplies while homes stay covered.
No new disruptions today, yet companies are raising industrial gas prices. Adani Total Gas is now at INR 119 per cubic metre. The government eyes backup import paths to steady flows.
Traders eye these stocks for high action; track Middle East updates and rule follow-through. Short-term lifts look likely from tight supplies, but fixes will shape the longer view. Check live quotes before moves.
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