AHMEDABAD, March 2026 — In a move that signals a deepening energy crisis for Indian manufacturing, Adani Total Gas has tripled Liquefied Natural Gas (LNG) prices for industrial consumers exceeding their daily quotas. The dramatic price hike is a direct fallout of the escalating conflict in the Middle East, which has begun to choke India’s primary energy supply lines.
The Surge in Industrial Rates The city gas distributor has raised LNG rates to ₹120 per standard cubic meter (scm), up from ₹40 scm earlier, for volumes consumed beyond 40% of daily contracted limits. This sharp escalation highlights the acute vulnerability of India’s industrial sector to maritime disruptions.
While industrial and commercial units—which represent roughly 30% of Adani Total’s demand profile—are facing the brunt of this increase, the company has notably kept prices unchanged for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) supplied to households. Unlike the residential segment, which receives priority allocation of cheaper domestic gas, bulk industrial demand is met entirely through expensive spot market imports.
The Qatar Outage and Supply Squeeze The crisis reached a breaking point after Qatar’s Ras Laffan plant, the world’s largest LNG terminal, halted operations following an Iranian drone strike. This outage is particularly bruising for New Delhi, which relies on imports for half of its natural gas needs, with Qatar accounting for a staggering 50% of those overseas shipments.
The impact is already rippling through India’s energy infrastructure. Peers including Petronet LNG and Gujarat Gas Limited have invoked force majeure clauses to limit deliveries, citing an inability to secure scheduled shipments amid the chaos.
Economic Fallout for Energy-Intensive Sectors Adani Total Gas currently reaches roughly 14% of India’s population through its direct footprint and a venture with the Indian Oil Corporation. This sudden cost escalation is expected to cripple margins for energy-intensive sectors that rely on the company’s network for steady fuel, including:
- Ceramics and Glass
- Chemicals and Manufacturing
Bottom Line The era of stable energy pricing for Indian industry has been upended by the “brutal math” of the Iran war. As Adani Total moves to protect its margins against soaring spot market prices, the industrial backbone of the country is left to navigate a high-cost environment where supply security is no longer guaranteed.
