The share price of Adani Total Gas Limited (ATGL) is surging, gaining over 32% over the past five trading days.
The stock continued its rally on Friday, shooting up to ₹644.85, up by more than 6% from the previous close of ₹607.60. At the time of writing, the stock is trading for ₹614.70.
Priority Gas Allocations
ATGL’s rally comes following the Indian government’s issuance of Natural Gas (Supply Regulation) Order, 2026, which set out priority gas allocations to essential sectors as the nation’s gas supply is heavily impacted by the ongoing war between Iran and US allies.
ATGL is a city gas distribution company that supplies piped natural gas (PNG) to domestic, commercial and industrial consumers as well as compressed natural gas (CNG) for transport. The company recently informed its industrial users to limit their consumption as the company faces tightened supply.
“The Company appreciates the Government’s prompt efforts in bringing out the said Order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers,” the company said in a statement.
Continued Closure of Strait of Hormuz
India’s gas supply is disrupted by the ongoing conflict in the Middle East. The country imports more than half of its natural gas requirements and a significant amount of this supply passes through the Strait of Hormuz, which is currently blocked by the Iranian forces.
Iran’s new supreme leader, Mojtaba Khamenei said that the closure of the maritime passage should be continued as a “tool to pressure the enemy.”
Analysts think it will take a while before the status quo will change.
“Clearly Iran showing that it isn’t seeking a ceasefire or an end to a war and that it believes it hasn’t exacted enough of a price on the US and its allies and even the global economy,” Dina Esfandiary, Middle East lead for Bloomberg Economics based in Geneva told CNN. “To me, it looks like things are going to continue.”
Source: https://coinpaper.com/15409/adani-total-gas-soars-32-in-5-days-amid-strait-of-hormuz-crisis
