Shares of Adani Total Gas have surged sharply over the past few days, rising about 33% in three days and nearly 37% in two days at one point. Investors are reacting to the government’s decision to prioritize gas distribution for households, CNG vehicles, and essential industries amid ongoing supply shortages and rising energy costs.
The move comes as global oil prices remain high and domestic natural gas supply faces pressure. By giving priority to key sectors, authorities aim to ensure that essential users continue receiving gas despite tight supply conditions.
Adani Total Gas operates city gas distribution networks across several Indian states and is benefiting from expectations of higher gas sales and improved profit margins. Its strong network and growing demand for piped natural gas (PNG) and compressed natural gas (CNG) make it a preferred choice for investors during the current supply squeeze.
Other companies in the sector, such as Gujarat Gas and Petronet LNG, also saw gains, though their rise was smaller compared to Adani Total Gas. Traders said the entire gas sector is gaining attention as traditional energy markets remain uncertain due to global supply chain disruptions and high crude oil prices.
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