Adani Total Gas Ltd (ATGL), a major city gas distribution company in India, has raised compressed natural gas (CNG) prices by ₹4.45 per kilogram as higher gas procurement costs put pressure on its operations. The company attributed the increase to surging international liquefied natural gas (LNG) prices, reduced domestic gas availability and supply curtailments by upstream producers.
The latest revision comes amid elevated energy prices and changes in India’s domestic gas supply mix. According to reports published on October 23, 2026, CNG prices at ATGL outlets now stand at ₹98.47 per kg in Ahmedabad, ₹102.60 per kg in Faridabad, Haryana, and ₹100 per kg in Jalandhar, Punjab. The increase could raise running costs for private motorists, taxi operators, auto-rickshaw drivers and commercial vehicle owners who rely on CNG.
Key Takeaways
- Price increase: Adani Total Gas raised CNG prices by ₹4.45 per kg, citing higher procurement expenses.
- Ahmedabad price: CNG now costs ₹98.47 per kg at ATGL outlets.
- Other reported prices: Rates are ₹102.60 per kg in Faridabad and ₹100 per kg in Jalandhar.
- Higher global LNG prices: International spot LNG prices have risen to around $30 per million British thermal units (MMBtu), compared with $10–12 in February 2026.
- Domestic supply constraints: Reduced availability of New Well Gas and lower supplies of high-pressure, high-temperature gas have added to procurement pressure.
- Impact on consumers: CNG users may face higher monthly fuel bills, while transport businesses could experience increased operating costs.
Why Has Adani Total Gas Increased CNG Prices?
ATGL said the price revision was necessary because the cost of procuring natural gas had risen substantially. The company cited a combination of higher international gas prices, lower availability of competitively priced domestic supplies and supply curtailments from upstream producers.
City gas distributors purchase natural gas from a combination of domestic sources and other supply arrangements. When lower-cost domestic gas becomes less available, distributors may have to meet a larger portion of their requirements through more expensive alternatives.
This raises the weighted-average cost of the gas they sell. Companies can respond by absorbing some of the increase, accepting lower margins or adjusting retail prices.
ATGL described the revision as a calibrated measure intended to partly offset higher procurement expenses while maintaining dependable CNG availability.
The company also said it continued to focus on limiting the impact on consumers. However, it did not provide a detailed breakdown of how much of the price increase was attributable to each individual supply constraint.
What Are the New CNG Prices?
The reported retail prices at Adani Total Gas outlets differ by location.
| City | Reported CNG price |
|---|---|
| Ahmedabad, Gujarat | ₹98.47 per kg |
| Faridabad, Haryana | ₹102.60 per kg |
| Jalandhar, Punjab | ₹100.00 per kg |
Source: Business Standard, October 23, 2026.
These are reported prices for the specified locations, not a nationwide price list. CNG prices vary according to the city gas distributor and geographical area. Consumers should check the latest rates at their local ATGL station before refuelling.
The company did not publish a complete list of all affected locations in the cited report. Therefore, the exact revised price in other cities should not be assumed from these three examples.
International LNG Prices Add to India’s Gas Costs
One of the key factors behind the increase is the sharp rise in international spot LNG prices.
ATGL said spot LNG prices had climbed to approximately $30 per MMBtu, compared with $10–12 in February 2026. This represents a substantial increase in the benchmark cost of procuring gas from international markets.
LNG is natural gas that has been cooled into liquid form so it can be transported by ship. Importing LNG allows countries to supplement domestic production, but it also exposes buyers to international prices, shipping costs and changes in global supply and demand.
When international prices rise, companies that need to purchase additional imported gas can face higher expenses. The effect on any individual distributor depends on its domestic gas allocations, contractual arrangements and exposure to spot-market purchases.
For India, the issue is particularly important because domestic gas production does not always cover demand across all sectors and regions. A reduction in competitively priced domestic supplies can increase the amount of more expensive gas required to meet customer demand.
How Domestic Gas Supply Constraints Are Affecting ATGL
International prices are only part of the problem. ATGL also cited reduced availability of New Well Gas (NWG) from domestic fields operated by state-owned producers such as Oil and Natural Gas Corporation (ONGC).
The company also pointed to lower supplies of high-pressure, high-temperature (HPHT) gas following a government order. These supply changes have reduced the share of competitively priced domestic gas available to meet CNG demand, according to ATGL.
The company has been managing the shortfall through a diversified sourcing strategy that includes domestic allocations, longer-term contracts and market purchases.
Its second-quarter FY2026-27 results, announced on October 22, also highlighted higher energy costs and reduced administered pricing mechanism (APM) gas allocation as operating challenges.
| ATGL operating and financial metric | Q2 FY2026-27 | Year-on-year change |
|---|---|---|
| Revenue from operations | ₹2,102 crore | +34% |
| EBITDA | ₹340 crore | +12% |
| Standalone profit after tax | ₹167 crore | +3% |
| Total gas sales volume | 315 million standard cubic metres | +12% |
| CNG sales volume | 223 million standard cubic metres | +17% |
Source: Adani Total Gas’ Q2 and H1 FY2026-27 results.
The figures show that ATGL’s business continued to expand despite the higher-cost environment. However, revenue growth does not necessarily mean that rising procurement costs have been fully offset. The company reported that its natural gas costs increased by 43% during the quarter.
How the CNG Price Hike Could Affect Consumers
The immediate impact will be felt by people and businesses that purchase CNG regularly. The additional expense depends on how much fuel a vehicle consumes.
For example, a vehicle that refuels with 10 kg of CNG would pay ₹44.50 more per fill-up if the full ₹4.45-per-kg increase applies to its local price.
| CNG purchased | Additional cost at ₹4.45 per kg |
|---|---|
| 5 kg | ₹22.25 |
| 10 kg | ₹44.50 |
| 15 kg | ₹66.75 |
| 20 kg | ₹89.00 |
| 100 kg | ₹445.00 |
These calculations illustrate the direct effect of a ₹4.45-per-kg increase. Actual expenses depend on the quantity purchased and the price charged at the local station.
For a private vehicle used occasionally, the monthly increase may be manageable. For auto-rickshaws, taxis, school transport and commercial fleets that refuel frequently, the additional cost can accumulate.
Transport operators may attempt to absorb the increase, improve fuel efficiency or adjust fares. Whether fares rise will depend on local competition, customer demand and the operator’s overall costs.
Will CNG Remain Cheaper Than Petrol and Diesel?
CNG has often been attractive to drivers because its cost per kilometre can be lower than that of petrol or diesel, depending on local prices and vehicle efficiency.
However, the latest increase means drivers should reassess the economics using current local fuel prices rather than relying on historical savings.
A fair comparison must consider:
- The price per kilogram of CNG and the price per litre of petrol or diesel.
- The distance each vehicle travels on a unit of fuel.
- The cost of vehicle maintenance and servicing.
- The upfront cost of a CNG vehicle or conversion kit.
- The frequency and convenience of refuelling.
A higher CNG price does not automatically make petrol or diesel cheaper to use. The outcome depends on the vehicle and its operating conditions. Drivers who travel long distances may also experience a different financial impact from those who use their vehicles only occasionally.
What the Increase Means for Adani Total Gas
For ATGL, the price adjustment is an attempt to recover part of the additional cost of sourcing natural gas while maintaining supply reliability.
The company operates a city gas distribution business serving CNG vehicle users and customers connected to piped natural gas (PNG). Its financial performance therefore depends on customer demand, gas procurement costs, network expansion and the ability to pass through input-cost changes without significantly weakening demand.
The latest quarter showed strong revenue and sales-volume growth, but the increase in gas costs illustrates the pressure that external supply conditions can create.
If international LNG prices remain elevated or domestic gas availability remains constrained, distributors could continue to face difficult decisions about pricing and margins. Conversely, improved domestic allocations or lower international prices could ease some of that pressure.
The Bigger Picture
The CNG price increase highlights how international energy markets and domestic gas-allocation policies can affect everyday transport expenses in India. Even when demand for natural gas remains strong, the cost of supplying it depends on where the gas comes from and the price distributors must pay.
For consumers, the immediate concern is the higher cost of refuelling. For businesses, the issue is whether fuel-cost increases can be absorbed without raising fares or reducing margins. For gas distributors, the challenge is balancing affordability, supply reliability and financial sustainability.
The next developments to watch are changes in global LNG prices, domestic gas allocations and subsequent pricing decisions by city gas distributors. These factors will help determine whether the latest increase remains a one-off adjustment or forms part of a broader period of higher CNG prices.
FAQs
1. Why did Adani Total Gas increase CNG prices by ₹4.45 per kg?
ATGL cited higher international LNG prices, reduced availability of domestic New Well Gas and lower supplies of HPHT gas. These factors increased its overall gas procurement costs.
2. What is the new CNG price in Ahmedabad?
CNG at ATGL outlets in Ahmedabad is reported at ₹98.47 per kg following the revision announced on October 23, 2026.
3. What are the reported CNG prices in Faridabad and Jalandhar?
The reported prices are ₹102.60 per kg in Faridabad, Haryana, and ₹100 per kg in Jalandhar, Punjab. Prices in other locations may differ.
4. How much more will motorists pay after the price hike?
At the full ₹4.45-per-kg increase, buying 10 kg of CNG costs ₹44.50 more, while buying 20 kg costs ₹89 more. The actual impact depends on the local price and quantity purchased.
5. Will other CNG companies also increase prices?
Other distributors may face similar procurement pressures, but one company’s revision does not confirm that competitors will follow. Any further increases will depend on each distributor’s gas sourcing costs, supply arrangements and pricing decisions.
Looking Ahead
Adani Total Gas will need to manage the balance between higher gas procurement costs and customer affordability as it continues expanding its distribution network. The company’s ability to secure domestic supplies and use longer-term sourcing arrangements could influence its future costs, although international energy prices will remain an important variable.
For CNG users, checking local prices and tracking fuel consumption will be the most practical way to understand the effect on household or business budgets. Whether the increase spreads further across the sector will depend on how global LNG prices, domestic gas availability and distributor pricing strategies evolve in the coming months.
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