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Adani Total Gas cuts industrial gas prices as supply crunch eases amid Iran war
Prices for CNG and PNG remain frozen, shielding retail consumers from the worst of the price swings due to the escalating Iran war, Adani Total Gas says.
Adani Total Gas Ltd., a joint venture of India's Adani Group and Total Energies SA of France, has cut prices for excess natural gas supplied to industrial clients, signalling some reprieve from the energy crisis brought on by the Iran war.
Starting at 6:00 am on 16 March, the rate for gas consumed beyond contracted limits will drop to ₹82.95 per standard cubic metre, down nearly 31% from the previous high of ₹119.90. The move comes as upstream prices soften, allowing the utility to pass on savings to a sector hit hard by recent supply curbs.
Navigating the Strait of Hormuz crisis
The price adjustment is a direct response to the supply chain shocks rippling through the Indian energy market. Following maritime disruptions in the Strait of Hormuz—a critical chokepoint for global LNG—Adani Total Gas had previously forced industrial and commercial users to slash consumption to 40% of their contracted volumes.
While the "excess gas" price is being lowered, the company noted that:
- Prices for the initial 40% threshold remain unchanged.
- Prices for CNG and PNG remain frozen, shielding retail consumers from the worst of the price swings.
Roughly 70% of Adani Total Gas' volume is sourced domestically, which prioritises households and vehicles, while the rest 30% relies on LNG imports. That goes to industrial users.
Strategic Rebalancing
In a communication to customers, Adani Total Gas stated the revision aims to maintain “system integrity and equitable distribution” during the prevailing disruption. The company is also seeking clarity from state-run GAIL (India) Ltd. regarding an 80% supply mandate for industrial customers under existing government orders.
The Indian government has recently rejigged gas allocations, prioritising the city gas distribution network and pooling imported LNG prices to mitigate the impact of the West Asia crisis.
“We are making every possible effort to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across segments,” the company said.
The reduction provides a much-needed margin cushion for energy-intensive industries in India, even as the broader energy market remains on edge due to ongoing naval instability in the Gulf.
