Adani Total Gas (ATGL) has sharply increased prices for supplies to industrial clients, citing reduced availability of gas amid conflict in West Asia. The company said the move responds to upstream curtailment and operational constraints that have affected its ability to meet contracted volumes. The change affects volumes consumed over and above the 40 per cent daily contract quantity.

ATGL raised the tariff to Rs119 per standard cubic metre for consumption beyond the 40 per cent threshold, up from around Rs40 per standard cubic metre previously. The notice described the adjustment as necessary because of disruptions to liquefied natural gas supply routes. The pricing change was applied from Tuesday, according to the customer notice. The company communicated the change through a customer notice that reached several industrial clients.

Company sources and the notice linked the supply disruption to attacks on Iran and subsequent retaliatory strikes, which have disrupted transit through the Strait of Hormuz between Iran and Oman. The transit corridor carries around one-fifth of global oil consumption and significant quantities of liquefied natural gas, and several vessels in the area were reported hit, leading to near-halt movements. ATGL attributed the curtailment to recent geopolitical developments impacting LNG supply routes. Any sustained shortfall could necessitate prioritising customers under existing allocation frameworks.

The increased price for marginal consumption is expected to raise costs for industrial users that exceed contracted daily quantities and may prompt customers to reassess consumption or seek alternate arrangements. The joint venture of Adani Group and the French oil major TotalEnergies has not been available for further comment beyond the notice. Market participants will monitor how sustained upstream curtailment influences domestic gas allocations and industrial supply contracts. Analysts will assess whether the adjustment is transitory or requires longer term amendments to supply agreements, and the notice did not quantify a timeline.