Gas prices in India have risen as a result of supply constraints due to the closure of the Strait of Hormuz. The price of domestic cooking gas has now increased by Rs 60 per cylinder, while the price of commercial LPG has increased by Rs 114.5. European natural gas prices jumped nearly 40% last week after Qatar Energy halted production at a key LNG facility amid escalating tensions in the Middle East.
The Government of India today issued the Natural Gas (Regulation of Supply) Order 2026, to give priority to PNG, CNG and LPG production in gas allocation. However, concerns about continued Middle East tensions leading to prolonged supply shortages have been raised in markets. Here are 30 stocks that could be directly affected if the gas shortage continues:
Fertilizer Stock: GNFC, Chambal Fertilizer, RCF, FACT, Deepak Nitrate
Urea production is heavily dependent on imported LNG, and continued shortages will affect fertilizer companies, as farmers prepare for the summer crop cycle, followed by the kharif or monsoon crop. Apart from relying on LNG imports, India imports almost all of its requirement of muriate of potash and up to 60% of diammonium phosphate (DAP).
Gujarat’s Narmada Valley Fertilizers and Chemicals on Friday informed the exchange that the conflict in the Middle East has adversely affected its liquefied natural gas (LNG) supply, and its supplier GAIL has issued a major power alert. “Accordingly, due to supply constraints, the allocation of RLNG quantity to GNFC under the supply agreement has been restricted to 60% of the total Daily Contracted Quantity (DCQ) with effect from March 06, 2026. This will affect the production of semi-urea.”
As a result, the stock fell more than 5% on Monday. However, total fertilizer stocks were lifted today, after the government issued the Natural Gas (Supply Regulation) Order 2026, noting that fertilizer plants will receive 70% of their average gas supply in the previous six months.
Other stocks in the sector that will remain in focus include Chambal Fertilizers & Chemicals, RCF, FACT and Deepak Nitrates. These reserves are down to 20% in 2026.
Restaurant Stocks: Eternal, Swiggy, Jubilant Foodworks, more
Combining food delivery stakes with Eternal and Swiggy, quick-service restaurant operators such as Jubilant Foodworks (operates Domino’s), Devyani International and Sapphire Foods (operates KFC and Pizza Hut), Westlife FoodWorld (operates McDonald’s) and specialty restaurants (operates), LPG is briefly focused in China.
Supply shortages have surfaced in several cities, including Mumbai and Bangalore, with restaurants in some areas warning of possible closures due to insufficient fuel. India imports more than 60% of its domestic LPG needs, and about 85-90% of these imports pass through the Strait of Hormuz. The country consumed 31.3 million tonnes of LPG in the fiscal year, of which only 12.8 million tonnes was produced domestically.
The Indian government is trying to regulate LPG supply during the ongoing crisis. “In light of the current geopolitical disruptions to oil supply and disruptions in LPG supply, the ministry has ordered oil refiners to increase LPG production and use this excess production for domestic LPG use,” the Ministry of Petroleum and Natural Gas said in a post on X.
“Ministry has prioritized domestic LPG supply to households and introduced a booking period of 25 days to prevent hoarding/black marketing. Non-domestic supply from imported LPG is prioritized to essential non-domestic sectors like hospitals and educational institutions.”
Gas importers, transporters and distributors: IGL, MGL, Petronet LNG, GAIL
Companies responsible for importing, transporting and distributing gas may remain on top of the crisis, at the same time facing volume and price risks. LNG importer Petronet LNG is facing disruption of cargo from Qatar due to the closure of the Strait of Hormuz. Major gas transmission company GAIL will face gas shortages if supply tightens, while city gas distributors IGL and MGL will experience the twin challenges of securing supply and managing high-cost transmission for consumers (CNG for vehicles and PNG for homes/industry), both posing risks.
Tile Manufacturers: Kajaria Ceramics, Sumani Ceramics, Sierra Sanitarium
As the Middle East conflict continues to affect India’s domestic gas supply, tile companies will be affected as LNG and propane account for nearly 70% of the fuel for the Morbi tile industry, which has now shrunk significantly. “This could impact tile domestic production and margins, as energy costs account for 20-25% of net sales. A roughly +5% increase in fuel costs could impact EPS by 5-7%,” Jeffries said.
The global brokerage sees supply constraints that may affect tile manufacturers’ production volumes, as many manufacturers may be unable to operate due to high gas prices. It is worth noting that, with the escalation of the Middle East conflict, last week the international price of LNG increased by 46%.
Automotive Assistant: Samurdhana Morson
While rising oil prices can affect auto stocks, rising gas prices can affect auto-related industries. Nomura said in its note that companies such as Samurdhana Motherson may face cost pressures in the near term due to rising gas prices in the EU, which have been delayed. “Auto assistants can also face more near-term declines as values are not close to -1SD,” it added.
Consumer Durables: PG Electroplast, Amber Enterprises
Gas is one of the most important raw materials for refrigerator manufacturers in the consumer goods industry. PG Electroplast said in an exchange filing that its suppliers have imposed certain supply constraints due to which the company’s allocation of LPG quantities has been limited.
Other key players in the industry, including Amber Inc., LG Electronics India, Voltas, Blue Star and Hitachi Energy India, will also remain under the radar.
Other storage:
Glass manufacturers such as Borosil Renewables will also be under active surveillance amid increased gas shortages, as furnaces in the industry are gas-intensive. The company’s CEO Pradeep Kruka told CNBC-TV18 in an interview today that it has oil backup and operations are currently normal, though it has received notice that supply contracts are subject to forced disruption amid the ongoing war.
Other stocks like SRF, Finolex Industries, Styrenix, Aarti Industries and others may also be affected.
((rejection: The recommendations, suggestions, opinions and views given by the experts are their own. (It does not represent the views of The Economic Times.)
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