Gujarat Gas jumped over 10% to ₹432 in early trade compared with its previous close of ₹391, supported by broad-based buying interest in gas distribution counters.
Shares of city gas distribution companies rallied sharply on Thursday morning as investors reacted to supply developments and government measures aimed at prioritizing domestic gas allocation.
Adani Total Gas Ltd (ATGL) surged as much as 15 per cent in early trade to ₹651, extending gains from the previous session. The stock later trimmed some advances but remained elevated, trading 11.5 per cent higher at ₹632.20 at 10.08 am.
Adani Total Gas Ltd jumps up to 15 per cent, extends previous session rally
Gujarat Gas Ltd climbs over 10 per cent on strong buying interest
Mahanagar Gas Ltd gains despite touching 52-week low intraday
Government prioritizes domestic LPG and CNG supply amid Middle East disruptions
Gujarat Gas jumped over 10 per cent to ₹432 in early trade compared with its previous close of ₹391, supported by broad-based buying interest in gas distribution counters.
Mahanagar Gas rose 2 per cent to ₹1,066.80 from its previous close of ₹1,049.30. However, the stock remained volatile during the session and touched a 52-week low of ₹1,010.10 intraday.
In addition, Indraprastha Gas and Petronet LNG soared 1-2.5 per cent on the National Stock Exchange.
ATGL on Wednesday informed stock exchanges that escalating geopolitical tensions in the Middle East have led some of its gas suppliers to curtail supplies, affecting deliveries to industrial customers.
The company also cited the Natural Gas (Supply Regulation) Order, 2026 dated March 9, 2026, issued by the Ministry of Petroleum and Natural Gas, which prioritizes domestic PNG and CNG supplies for the transport segment.
“The company appreciates the Government’s prompt efforts in bringing out the said Order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers. The Company is presently assessing the impact of above and is taking necessary steps to mitigate the impact,” ATGL said in its filing.
Brokerage firm JM Financial said the Indian government has addressed concerns regarding the country’s energy security amid disruptions in oil and gas flows through the Strait of Hormuz due to the ongoing Middle East crisis.
The brokerage noted that around 30 per cent of India’s crude oil and 25 per cent of natural gas requirements are currently impacted due to the Strait of Hormuz blockage despite efforts to diversify sourcing.
JM Financial added that India’s oil inventories may be adequate to meet three to four months of domestic demand shortfall if crude imports through the key route remain suspended. However, it highlighted that gas shortages remain a concern.
“We see a need for 20–25 per cent gas demand rationalization across sectors as the only sustainable way to offset the current gas requirement shortfall amid minimal gas inventory,” the brokerage said.
The brokerage also warned of significant stress in LPG supplies. “Furthermore, the blockage of SoH has impacted India’s LPG requirements the most with 44 per cent still unmet (despite 25 per cent rise in domestic LPG production) as 60 per cent of our LPG requirements is imported — of which 90 per cent comes from SoH and has ground to a halt,” JM Financial noted.
It added that nearly 85 per cent of India’s LPG consumption is for domestic use, with the remaining 15 per cent meant for commercial purposes.
“Though the GoI has prioritized LPG allocation for domestic cooking fuel usage, our current overall LPG availability of 56 per cent even falls short of meeting domestic LPG demand; hence, availability for commercial LPG supply may continue to be a challenge,” the brokerage said.
Investors are closely tracking further policy measures and supply developments, as sustained disruptions could influence industrial gas consumption and city gas distribution volumes in the coming months.
Published on March 12, 2026