Gujarat Gas and MRPL Shares in Focus After Force Majeure Curbs Industrial Gas Supply

Synopsis: Shares of Gujarat Gas Limited fell about 7% after the company invoked force majeure and restricted industrial gas supply due to constrained LNG availability. Meanwhile, Mangalore Refinery and Petrochemicals Limited shares gained after suspending some fuel exports amid crude oil supply disruptions linked to Middle East tensions affecting global energy flows.

The energy sector was in the spotlight after disruptions in the supply chain, which were caused by the tensions in the Middle East, started impacting companies in India. The shares of Gujarat Gas Limited faced a sharp correction after the company decided to restrict industrial gas supplies owing to LNG shortages, and Mangalore Refinery and Petrochemicals Limited gained after reports of export suspensions owing to crude supply constraints. This shows how geopolitical risks are impacting the supply chain in India.

With a market cap of Rs 27,000 crore, the shares of Gujarat Gas Ltd crashed about 7% in today’s trading session and reached a low of Rs 389.45. When compared to its previous day’s closing price of Rs 418.60 . The shares are trading at a PE of 23.3, whereas their industry’s PE is at 16.8, and they have given a return of more than 230% since their listing in September 2015.

With a market cap of Rs 34,800 crore, the shares of MRPL Ltd jumped about 6% in today’s trading session and reached a high of Rs 202.15. When compared to its previous day’s closing price of Rs 191.20 . The shares are trading at a PE of 16, whereas their industry’s PE is at 13.5.

Global Energy Disruptions Impact Indian Companies

The rising geopolitical tensions in the Middle East are beginning to affect Indian energy companies. Indian energy companies are seeing a rise in energy supply chain disruptions in both crude oil and LNG. Several energy companies are facing supply chain issues as shipping routes and crude oil supply from the Gulf region are still unclear.

Gujarat Gas Limited has issued force majeure notices to its industrial customers as the company is facing severe constraints in the availability of regasified liquefied natural gas (R-LNG). Consequently, the company has restricted the Daily Contracted Quantity (DCQ) of gas supplied to industrial customers from 6th March 2026. The restriction is a result of disruptions in LNG supply due to the Middle East conflict.

At the same time, Mangalore Refinery and Petrochemicals Limited (MRPL) has reportedly issued a force majeure on gasoline export cargoes for March and April. Additionally, MRPL temporarily suspended the export of gasoline, gasoil, and jet fuel. The refinery is reportedly facing difficulties in procuring crude oil as supply routes through the Strait of Hormuz, an important global oil shipping route, are disrupted.

Wider Impact on India’s Energy Supply

Since India imports approximately 40% of its crude oil requirements from the Middle East region, any geopolitical issues in the region would have a wider impact on India’s energy supply. As crude oil and LNG supplies are already in disarray, it may become challenging for refiners to meet energy demands due to higher costs and supply issues.

During these challenging times, India has started to look for other sources to meet its energy requirements in terms of crude oil, LPG, and LNG supplies. This would help India avoid any geopolitical issues in the Middle East region with respect to crude oil supplies.

Despite all these issues in crude oil supplies to India, India has enough crude oil reserves to meet its crude oil requirements for 25 days. Similarly, refiners have enough crude oil reserves to meet gasoline, gasoil, and LPG requirements for 25 days.

All in all, the geopolitical tensions in the Middle East are slowly starting to affect India’s energy sector. While companies such as Gujarat Gas Limited and Mangalore Refinery and Petrochemicals Limited are already experiencing issues in their supply chain, India’s inventory levels and efforts to diversify energy sources can help mitigate possible issues in the energy sector.

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