Adani Total Gas raises CNG prices by ₹4 per kg amid rising LNG costs

Adani Total Gas Ltd (ATGL) has increased CNG prices by ₹4 per kg across its regions, effective from August 1, due to a surge in natural gas sourcing costs. This is attributed to reduced domestic gas availability and higher global LNG prices, driven by geopolitical tensions. In Ahmedabad, the new CNG price stands at ₹94.02 per kg, the highest increase in recent months.

This move is anticipated to raise fuel expenses for private vehicle owners, auto-rickshaw operators, and commercial transport fleets that have recently transitioned to CNG. The price gap between ATGL and state-run Gujarat Energy Ltd (GEL), which sells CNG at ₹85.01 per kg, has widened, potentially impacting demand, especially in rural markets where consumers can switch suppliers.

ATGL has raised CNG prices five times since April 2026, when the price was ₹81.36 per kilogram. One dealer expressed concern over potential customer loss in rural markets. ATGL attributes the price revision to the significant rise in natural gas sourcing costs due to domestic gas shortages, supply curtailments, and elevated global gas prices caused by geopolitical issues.

Despite these challenges, the company aims to minimize the impact on consumers while ensuring a steady CNG supply, as it remains an economical and environmentally friendly fuel option. The increase in global LNG market volatility, particularly after the Middle East conflict, has led to a price surge in LNG, reaching around $25 per MMBTU in early March, compared to the $10-13 per MMBTU range in February.

This trend has coincided with lower domestic gas availability, forcing distributors to procure imported fuel at higher costs, putting pressure on retail pricing.