Adani Total Gas and Gujarat Gas shares surged on Wednesday, March 11, 2026, following emergency government mandates prioritizing domestic gas supplies over industrial usage. Adani Total Gas stock hit its 20 percent upper circuit limit, reaching intraday highs of ₹551.7.
The sudden rally across the city gas distribution sector stems from severe maritime disruptions in the Strait of Hormuz. The Indian government invoked the Essential Commodities Act to issue the Natural Gas (Supply Regulation) Order, 2026, forcing a hard pivot of domestic gas toward household piped natural gas and vehicular compressed natural gas.
Supply Reallocation Drives Stock Surges
Gujarat Gas shares surged 12 percent to touch ₹420 before closing up 7.7 percent. Mahanagar Gas, GAIL, and Indraprastha Gas posted gains ranging from 1 percent to 3.4 percent. The industry avoided the broader market downturn due to their protected core consumer base and new pricing power over industrial clients.
City gas distributors are now charging inflated premium rates to industrial clients for gas consumed beyond newly capped quotas. Industrial gas rates for excess consumption nearly tripled from ₹40 to ₹119 per standard cubic meter. Domestic cooking gas cylinder prices increased by ₹60. Commercial LPG prices rose by ₹114.5.
Geopolitical Strain on Energy Imports
The ongoing conflict involving the US, Israel, and Iran has choked the Strait of Hormuz. The maritime chokepoint handles 20 percent of global oil shipments and a significant volume of liquefied natural gas transit.
India imports 60 to 65 percent of its domestic LPG consumption. Over 90 percent of these imports originate from West Asian suppliers including the UAE, Qatar, Saudi Arabia, and Kuwait. The supply crunch forced immediate rationing at the state level to protect household reserves.
Gujarat instituted a 50 percent supply cut to the Morbi ceramic cluster. The state also enforced a 40 percent cut to fertilizer and milk processors to ensure sufficient residential supply.