Gas stocks surge 18% amid supply worries in India
What's the story
Gas-related stocks have witnessed a massive spike on Wednesday, with Adani Total Gas leading the pack. The company's shares surged as much as 18% to an intraday high of ₹561. Gujarat Gas followed suit, rising some 12% to ₹420 during the session. Other gas-linked companies such as Petronet LNG, GAIL (India), Indraprastha Gas (IGL) and Mahanagar Gas (MGL) also saw gains of over 2%.
Market impact
West Asia conflict disrupts India's gas supply
The ongoing conflict between Iran and the Israel-US alliance has begun to impact India's energy market, especially its natural gas and LPG supplies. Disruptions in shipments through the Strait of Hormuz, a vital global energy transit corridor, have tightened supplies as tanker movement faces heightened security risks. Several global suppliers have already issued force majeure notices on gas shipments due to these disruptions. India is heavily reliant on imported gas to meet domestic demand.
Regulatory measures
India issues Natural Gas (Supply Regulation) Order 2026
In response to the ongoing West Asia conflict, the Indian government has issued the Natural Gas (Supply Regulation) Order 2026. The order prioritizes PNG, CNG and LPG production in gas allocation. It also invoked the Essential Commodities Act of 1955 (ESMA) to ensure an uninterrupted domestic cooking gas supply. The government has directed refineries and petrochemical units to maximize LPG production and divert key hydrocarbon streams to the LPG pool.