Adani Total Gas cites surge in gas procurement costs behind CNG price hike

Ahmedabad, Oct 23 (IANS) Adani Total Gas Limited (ATGL) on Friday increased compressed natural gas (CNG) prices by Rs 4.45 per kg in Ahmedabad, citing a sharp rise in natural gas procurement costs due to elevated global gas prices, reduced domestic gas availability and continued supply curtailments.

With the latest revision, the retail price of CNG in the city has increased to Rs 98.47 per kg. The move comes barely months after the company raised CNG prices by Rs 4 per kg in August 2026, when rates were revised to Rs 94.20 per kg.

Explaining the latest increase, the company said the revision was necessitated by a substantial rise in natural gas procurement costs amid geopolitical developments, lower availability of domestic gas and ongoing supply constraints.

“The CNG price revision is necessitated by a substantial rise in natural gas procurement costs, reflecting elevated global gas prices amid geopolitical developments, lower availability of domestic gas and ongoing supply curtailments. ATGL continues to focus on limiting the impact on consumers while maintaining uninterrupted CNG availability. CNG remains an economical and environmentally friendly fuel choice,” an ATGL Spokesperson stated.

The company noted that reduced availability of New Well Gas (NWG) and High Pressure High Temperature (HPHT) gas, along with rising spot liquefied natural gas (LNG) prices, have significantly increased the weighted average cost of gas used for the CNG segment.

According to ATGL, global spot LNG prices have surged from around $10-12 per MMBtu in February 2026 to nearly $30 per MMBtu currently, sharply raising the cost of imported gas.

The company also pointed to continued curtailment of supplies from upstream producers, forcing it to source gas from alternative and more expensive channels.

ATGL said the recent decline in NWG allocations has reduced the availability of competitively priced domestic gas for CNG sales. In addition, an Office Memorandum issued on October 19, 2026, has reduced HPHT gas volumes available for priority-sector consumption, further tightening domestic gas supplies.

–IANS

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