Adani Total Gas has raised CNG prices in Ahmedabad to Rs 100.77 per kg, crossing the Rs 100 mark for the first time. This price increase reflects the impact of surging global LNG costs, which are pressuring company profit margins and narrowing the price gap between CNG and petrol for vehicle owners.
Adani Total Gas has increased its Compressed Natural Gas (CNG) retail rates in Ahmedabad by Rs 2.30 per kg. This adjustment brings the price to Rs 100.77 per kg, marking the first time the cost has crossed the Rs 100 threshold in the city. This move is part of a series of price changes implemented by the company throughout 2026 to manage the rising cost of gas.
The repeated price hikes are driven primarily by volatility in global energy markets. International spot LNG prices have surged significantly over the past year, forcing the company to pass these higher procurement costs to consumers. Additionally, the company has faced reduced availability of cheaper domestic gas and supply curtailments, which has necessitated the purchase of more expensive spot-market gas. These cumulative factors have led to eight price increases so far in 2026, with a net rise of Rs 17.79 per kg.
From a financial perspective, investors are observing a trade-off between growth and profitability. While the company recorded a 34% year-on-year revenue growth in the second quarter of the 2027 financial year, these gains have been challenged by higher operating costs. EBITDA margins have compressed to approximately 16.2%, largely due to a 43% increase in gas procurement costs compared to the previous year. The company is managing this by adjusting retail prices, but such actions come with their own business risks.
A significant concern for shareholders is the narrowing cost advantage of CNG compared to conventional fuels like petrol. Historically, the lower price of CNG compared to petrol served as a primary driver for fleet operators and commuters to adopt gas-powered vehicles. With CNG now retailing at Rs 100.77 per kg and petrol prices in Ahmedabad hovering near Rs 101.83 per liter, this economic incentive is shrinking. If this price parity persists, it may impact volume growth, as the motivation for new users to switch to CNG could decline.
Looking ahead, the key monitorable for investors will be the stability of global LNG prices and the company’s ability to secure a better mix of domestic gas. The market will also watch for any signs of demand softening in the transport sector, as persistent price hikes could affect the usage rates of existing customers. The company’s ability to balance its margin protection strategy with volume growth will be critical in the coming quarters.