Adani Total Gas Limited (ATGL) on Friday, 23 October 2026, raised compressed natural gas (CNG) prices by ₹4.45 per kg in Ahmedabad, pushing the retail rate to ₹98.47 per kg. The company attributed the revision to a sharp increase in natural gas procurement costs driven by elevated global gas prices, reduced domestic gas availability, and continued supply curtailments.

Second Hike in Months

This is the second significant CNG price increase in Ahmedabad within a short span. ATGL had previously raised CNG prices by ₹4 per kg in August 2026, when the retail rate was revised to ₹94.20 per kg. Combined, the two hikes have added ₹8.45 per kg to CNG costs in the city in a matter of months, placing cumulative pressure on consumers — particularly auto-rickshaw and taxi operators who rely on CNG as their primary fuel.

What Is Driving the Cost Surge

According to ATGL, global spot liquefied natural gas (LNG) prices have surged from approximately $10–12 per MMBtu in February 2026 to nearly $30 per MMBtu currently — a near-tripling in under nine months. This sharp spike in imported gas costs has significantly raised the weighted average cost of gas used for the CNG segment.

Domestically, the company pointed to a decline in New Well Gas (NWG) allocations, which has reduced the availability of competitively priced domestic gas for CNG sales. Compounding the issue, an Office Memorandum issued on 19 October 2026 reduced volumes of High Pressure High Temperature (HPHT) gas available for priority-sector consumption, further tightening supply. Ongoing curtailments from upstream producers have forced ATGL to source gas from alternative, more expensive channels.

What the Company Said

An ATGL spokesperson stated: 'The CNG price revision is necessitated by a substantial rise in natural gas procurement costs, reflecting elevated global gas prices amid geopolitical developments, lower availability of domestic gas and ongoing supply curtailments. ATGL continues to focus on limiting the impact on consumers while maintaining uninterrupted CNG availability. CNG remains an economical and environmentally friendly fuel choice.'

Broader Context and Consumer Impact

The price revision in Ahmedabad reflects a wider stress across India's city gas distribution (CGD) sector, where companies are grappling with the disconnect between regulated domestic gas allocations — which have been cut — and the cost of spot LNG on international markets. Geopolitical tensions, particularly in gas-exporting regions, have kept global LNG prices elevated well beyond post-pandemic norms.

For Ahmedabad commuters and commercial vehicle operators, CNG approaching ₹100 per kg is a psychological and economic threshold. Notably, CNG had been positioned for years as a significantly cheaper alternative to petrol and diesel; as that cost gap narrows, the relative advantage of CNG vehicles comes under scrutiny.

What to Watch

Any further curtailment of domestic gas allocations or continued strength in global LNG prices could trigger additional revisions before the end of the financial year. Industry observers will also watch whether other city gas distribution operators in Gujarat and other states follow with similar hikes in the near term.