Adani Total Gas Raises CNG Prices by ₹4.45 per kg Citing High LNG Costs and Supply Cuts

Adani Total Gas Ltd (ATGL), a city gas distributor operating across several states including Gujarat and Uttar Pradesh, has increased the retail price of Compressed Natural Gas (CNG) by ₹4.45 per kg.

According to information available on the company's website, the updated pricing puts CNG at ₹98.47 per kg in Ahmedabad, ₹102.60 per kg in Faridabad, Haryana, and ₹100 per kg in Jalandhar.

The company stated in a media release that the price revision was driven by a substantial rise in natural gas procurement costs. Global spot Liquefied Natural Gas (LNG) prices have climbed to approximately $30 per Million British Thermal Units (MMBtu), up from $10–12 in February 2026, significantly increasing the cost of imported gas.

In addition to international market pressures, ATGL cited reduced availability of New Well Gas (NWG) from domestic fields operated by state-owned companies like ONGC. The company also pointed to lower supplies of High-Pressure, High-Temperature (HPHT) gas following a government order. These factors have decreased the share of competitively priced domestic gas available to meet CNG demand, adding pressure on the company's weighted-average procurement costs.

ATGL described the adjustment as a calibrated measure to partly offset rising procurement expenses while maintaining reliable supplies. The supply curtailments by upstream producers created a sourcing gap that required fulfillment through alternative, more expensive sources.

A company spokesperson noted that ATGL continues to focus on limiting the impact on consumers while maintaining uninterrupted CNG availability, describing the fuel as an economical and environmentally friendly choice. However, the firm did not specify the full list of locations affected by the revision or provide a detailed breakdown of the additional procurement costs attributable to each specific supply constraint.

The price revision underscores the exposure of city gas distributors to shifts in domestic gas allocation and international energy markets. When lower-cost domestic supplies become less readily available, distributors face the challenge of relying on costlier alternatives, which impacts procurement margins and frequently translates to higher retail prices for motorists, taxis, and commercial vehicle operators.

"This price revision highlights the vulnerability of city gas distributors to global energy price fluctuations and domestic supply constraints. When international LNG costs surge and domestic allocations decline, companies face difficult operational choices to maintain reliable fuel supplies. For businesses and commercial vehicle operators relying on CNG, managing fuel cost volatility will remain a critical operational factor as distributors balance procurement expenses with market realities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes