- Price slashed to Rs 82.95 per SCM from Rs 119.90 for select industrial consumption
- Relief follows softening upstream gas prices amid global supply volatility
- CNG and domestic PNG users remain insulated from price changes
- Curbs on industrial consumption continue due to LNG supply disruptions linked to West Asia tensions
NE ENERGY BUREAU
NEW DELHI, MAR 16
In a move aimed at easing the burden on industrial consumers while maintaining supply stability, Adani Total Gas Ltd (ATGL) has reduced the price of excess natural gas supplied to certain industrial customers by nearly 31 per cent, bringing it down to Rs 82.95 per standard cubic metre (SCM) from Rs 119.90 per SCM.
The revised rate came into effect at 0600 hours on March 16, reflecting the softening of upstream gas prices even as supply chains remain strained due to geopolitical disruptions.
ATGL is a city gas distribution joint venture between the Adani Group and France’s energy major TotalEnergies.
Balancing consumer relief with supply stability
The company said the price reduction has been implemented to pass on the benefit of lower upstream gas costs to consumers while ensuring balanced distribution during the ongoing supply constraints.
“The Excess Gas Price… has been revised downward from Rs 119.90 per SCM to Rs 82.95 per SCM with effect from 0600 hours on March 16, 2026,” the company informed industrial customers in a communication.
“The revision has been undertaken with the intent of passing on the benefit of reduced upstream gas prices while continuing to manage system integrity and equitable distribution of gas during the prevailing supply disruption.”
West Asia crisis disrupts LNG supplies
The price revision comes against the backdrop of disruptions in India’s LNG supply chain triggered by the conflict in West Asia, which has affected shipping routes through the **Strait of Hormuz — a crucial global energy corridor.
Because of the disruption, ATGL had earlier directed commercial and industrial customers to limit consumption to 40 per cent of their contracted volumes.
Gas consumption beyond this threshold is categorised as “excess gas” and priced at spot market-linked rates.
While the price of this excess supply has now been reduced, other terms related to excess gas provisions remain unchanged, the company said.
ATGL has also sought clarification from GAIL (India) Ltd regarding the existing directive that mandates 80 per cent supply to industrial consumers.
Households and transport segment protected
Despite the supply disruption, ATGL has maintained stable pricing for CNG and domestic piped natural gas (PNG) supplied to households.
About 70 per cent of the company’s gas volumes come from domestic sources, primarily used for CNG vehicles and PNG connections for homes.
The remaining 30 per cent is imported LNG, largely supplied to commercial and industrial customers.
To safeguard household and transport needs, the government recently reprioritised gas allocation, ensuring adequate supply for CNG and domestic PNG while pooling imported LNG prices for other segments.
Commitment to uninterrupted supply
The company said it continues to manage supply constraints while protecting consumer interests across segments.
“ATGL is making every possible effort to ensure uninterrupted gas supplies while managing supply challenges and safeguarding consumer interests,” the company stated.
