The Gujarat Gas share price surges by around 10 per cent on March 12, 2026, despite a sharp sell off seen in the Indian markets.
Let’s understand why Gujarat Gas share price surged on Thursday, March 12, 2026.
LPG Supply Disruption Concerns
Recent sell-off in gas-related stocks due to concerns over supply of commercial LPG cylinders in the country. The National Restaurant Association of India (NRAI) had raised the issue and asked the government to ensure the steady availability of commercial cylinders for restaurants and food businesses. According to the association, nearly 95 per cent of restaurants depend on LPG for cooking, and any disruption in supply could affect their daily operations.
The association also highlighted that recent policy measures prioritising LPG supply for household consumers have created uncertainty among distributors and commercial users. As a result, many restaurants are reportedly left with only two to three days of LPG stock, raising concerns about potential disruptions in food services if the supply situation does not improve.
Government Steps to Manage Gas Supply Resulted into Clarity for Gas Related Stocks
The Indian government on Tuesday issued the Natural Gas (Supply Regulation) Order, 2026 to prioritise the allocation of PNG, CNG and LPG in gas supply.The Indian government on Tuesday issued the Natural Gas (Supply Regulation) Order, 2026 to prioritise the allocation of PNG, CNG and LPG in gas supply. The government has also used the Essential Commodities Act, 1955 to help maintain the regular supply of domestic cooking gas during the ongoing West Asia conflict.
Gas Prices Rise After Strait of Hormuz Closure
Gas prices in India have increased due to supply issues linked to the closure of the Strait of Hormuz. Domestic LPG prices have gone up by Rs 60 per cylinder, while commercial LPG prices have risen by Rs 114.5. At the global level, European natural gas prices jumped nearly 40 per cent last week after Qatar Energy stopped production at a key LNG facility amid rising tensions in the Middle East.
About the Company
Gujarat Gas Ltd is one of India’s leading city gas distribution companies and operates under the Gujarat State Petronet Limited group. The company is engaged in the distribution of natural gas to industrial, commercial, domestic, and transportation segments across several regions in India. It supplies piped natural gas (PNG) to households and industries, and compressed natural gas (CNG) for vehicles through its network of gas stations. The company has a strong presence in Gujarat, serving a large number of industrial customers, particularly in sectors such as ceramics, chemicals, textiles, and manufacturing.
Gujarat Gas Limited has a market capitalisation of around Rs 29,232 crore. The company reports a return on capital employed (ROCE) of about 19.5 per cent and a return on equity (ROE) of around 14.2 per cent. The company is almost debt-free and has been maintaining a healthy dividend payout of around 33.0 per cent.
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