Adani Total Gas shares hit 20% upper circuit amid supply worries in India. Here’s why

Shares of Adani Total Gas rallied 20% to hit the upper circuit on Wednesday, extending gains despite India's deepening gas crisis. The company said domestic piped natural gas (PNG) and compressed natural gas (CNG) for transport received priority allocation under a recent government order.

The company's shares remained locked in the upper circuit at Rs 566.90 apiece on the NSE.

Tensions between Iran and the US-Israel continue to escalate, with no sign of a diplomatic resolution. Supply shortages began to emerge in several cities, including Mumbai and Bengaluru, with restaurants in some areas warning of possible closures due to insufficient fuel.


Other city gas distributors also surged—Gujarat Gas jumped over 11%, while Petronet LNG, GAIL (India), Indraprastha Gas (IGL) and Mahanagar Gas (MGL) gained more than 2% each.

This comes after the stocks took a severe beating earlier last week as tensions between Iran and the US-Israel escalated, with no sign of a diplomatic resolution. Supply shortages began to emerge in several cities, including Mumbai and Bengaluru, with restaurants in some areas warning of possible closures due to insufficient fuel.

Mideast war to end soon?

Global markets are betting on the ongoing war between Iran and Israel-US to end soon after US President Donald Trump on Tuesday suggested an imminent end to the conflict. Trump told CBS News that he thinks the war against Iran "is very complete" and that Washington was "very far ahead" of his initial four-to-five week estimated timeframe. He further told reporters that his administration was lifting sanctions ⁠on some countries ⁠as part of efforts to stabilise the oil market.

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"So we have sanctions on some countries. We're going to take those sanctions off until the Strait is up," he said, without providing any more details. "It's going to end soon, and if it starts up again, they’ll be hit even harder,” Trump added.

However, the conflict is yet to show any sign of diplomatic resolution. The US and Israel launched what some described as the war’s heaviest strikes on Iran. Iran’s government warned that its state security forces were ready with "fingers on the trigger" to confront any revival of anti-government protests. The country targeted several areas in Israel, Lebanon and the Gulf early on Wednesday as the war stretched into its 12th day.

Gas prices surge in India

As a result of supply constraints arising from the closure of the Strait of Hormuz, gas prices have surged in India. Domestic cooking gas now costs Rs 60 more per cylinder, while commercial LPG price rose by Rs 114.5.

European natural gas prices jumped nearly 40% last week after Qatar Energy halted production at a key LNG facility amid escalating Middle East tensions.

Govt measures amid gas crisis

The Indian government on Tuesday issued the Natural Gas (Supply Regulation) Order 2026, in order to prioritise PNG, CNG and LPG production in gas allocation. The government also invoked the Essential Commodities Act of 1955 (ESMA) to ensure an uninterrupted domestic cooking gas supply amid the ongoing West Asia conflict.

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The government directed refineries and petrochemical units to maximise LPG production and divert key hydrocarbon streams to the LPG pool. These include domestic piped natural gas supply, compressed natural gas for transport, LPG production, including LPG shrinkage requirements, pipeline compressor fuel and other essential pipeline operational requirements.

Adani Total Gas says domestic PNG, CNG for transport allocated priority

In an exchange filing, Adani Total Gas said that domestic piped natural gas (PNG) and compressed natural gas (CNG) for transport have been allocated priority under a recent government order, even as curbs by some suppliers following Middle East tensions have affected the company’s supplies to industrial customers.

The company added that some of its gas suppliers have curtailed deliveries amid escalating geopolitical tensions in the Middle East, impacting the company’s supply to industrial consumers.

“The company appreciates the Government’s prompt efforts in bringing out the said Order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers,” Adani Total Gas said in its filing.

“The Company is presently assessing the impact of above and is taking necessary steps to mitigate the effect, including co-ordination with respective authorities,” it added.

(With inputs from agencies)

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