Shares of Gujarat Gas Ltd declined 2.01% to ₹467.05 in Friday’s early session, down from a previous close of ₹476.65. The stock followed broader pressure on city gas distribution companies, as global crude oil prices surged over 10% following Israel’s preemptive military strike on Iran.
Gujarat Gas, which supplies piped natural gas (PNG) and compressed natural gas (CNG), often bears the brunt of rising global energy costs, especially when LNG spot prices rise in tandem with crude oil benchmarks. As WTI and Brent crude futures soared past $75 and $77 per barrel respectively, investor concerns mounted over potential supply disruptions and rising input costs.
The spike in energy prices comes amid fears of escalation, with analysts warning that a broader conflict involving Iran may strain global oil and gas logistics, especially if it impacts the Strait of Hormuz, through which nearly 20% of the world’s oil passes.
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