Gas Crisis Hits India Amid Middle East War: 10 Stocks, Including Eternal, Kajaria, IGL, MGL, to Be Most Impacted

India faces significant gas supply challenges due to conflict in the Middle East. The closure of the Strait of Hormuz has tightened global gas supplies, escalating costs and affecting several key sectors within India. 

Impact of Gas Shortages on Key Sectors 

Reports suggest that various industries in India are experiencing gas shortages due to Middle East tensions. The most affected include the fertiliser, restaurant, and tile manufacturing sectors.  

Fertiliser companies like GNFC and Chambal Fertilizers are particularly impacted as urea production is reliant on imported LNG.  

Meanwhile, quick-service restaurants such as Jubilant Foodworks and Eternal face rising operational costs due to the increased prices of LPG. 

Government's Measures in Response 

The Indian government issued the Natural Gas (Supply Regulation) Order 2026 to manage the crisis. This order prioritises PNG, CNG, and LPG production, ensuring that essential services maintain operational capability.  

Despite these measures, concerns about the prolonged effects of continuing Middle East tensions remain prominent. 

Read More: India Faces LPG Strain as West Asia Conflict Disrupts Energy Supplies!  

Effects on Gas Importers, Transporters & Distributors 

Companies like Petronet LNG and GAIL face disruptions due to import and transmission challenges. As major distributors, IGL and MGL are burdened by the task of managing cost pass-throughs to consumers, particularly for CNG and PNG. 

Consequences for Indian Manufacturers 

Tile manufacturers such as Kajaria Ceramics and Somany Ceramics are pressured to maintain production due to the lack of available gas supplies, impacting their output and profitability. With energy costs comprising a significant portion of expenses, these companies are compelled to reassess production strategies. 

Conclusion 

The ongoing conflict in the Middle East continues to impact the Indian economy significantly, with gas shortages affecting key industries. This situation has necessitated government interventions, underscoring the intricate connections between global geopolitical tensions and their domestic repercussions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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