New Delhi, India — Adani Total Gas Limited (ATGL), a joint venture between Gautam Adani’s Adani Group and France-based TotalEnergies, has sharply increased gas prices for its large industrial customers, citing global supply disruptions and rising procurement costs.
According to company sources, the price of industrial gas has been raised from ₹40 per standard cubic meter (SCM) to around ₹119 per SCM, marking a nearly threefold increase. The company says the hike was necessary due to a sudden shortage of liquefied natural gas (LNG) in international markets and the need to procure gas from more expensive alternative sources.
Supply Crisis Linked to Middle East Tensions
The price surge is largely linked to rising geopolitical tensions around the Strait of Hormuz, a strategically critical maritime route through which roughly one-fifth of the world’s crude oil and a significant portion of global LNG supplies are transported.
Recent military tensions involving the United States, Israel, and Iran have reportedly disrupted shipping activity through the corridor. Security concerns, including fears of drone and missile attacks, have also affected energy operations in the region.
Energy exporters such as Qatar—a key LNG supplier to India—have faced operational disruptions, forcing temporary shutdowns at some facilities. With shipping routes constrained, Indian buyers are struggling to secure regular LNG cargoes.
Impact on India’s Energy Supply
India relies heavily on imported energy. The country imports roughly 88% of its crude oil and nearly 50% of its LNG needs, with 50–60% of LNG shipments passing through the Strait of Hormuz.
Major energy companies such as Petronet LNG and GAIL (India) Limited have already warned of possible supply cuts if disruptions continue.
With natural gas becoming scarce, many industrial units have begun shifting to alternative fuels like furnace oil or naphtha, both of which can cost more than twice as much as natural gas, significantly increasing operational expenses.
Rising Global Energy Prices
The global energy market is already showing signs of strain. The international benchmark Brent Crude has climbed from an average of $66–$67 per barrel in early 2026 to around $84 per barrel, reflecting heightened geopolitical risk and supply concerns.
ATGL stated that the current geopolitical situation has created severe logistical and operational challenges. Analysts warn that if tensions in the Middle East persist, energy prices could rise further, potentially increasing industrial costs and contributing to inflation in India.
Economic experts say the ripple effects could soon reach consumers as higher production and transportation costs gradually pass through to retail prices across several sectors.