GAIL (India) Ltd. filed for the revision of its integrated tariff in August 2024. The company's approval is now nearing completion, Chairman Sandeep Kumar Gupta told NDTV Profit.
The tariff revision proposal of the company is set to be considered by the Petroleum and Natural Gas Regulatory Board in its April 2025 meeting, he said.
Gupta is confident of a tariff hike of at least a Rs 12 per million metric British thermal unit.
Expected Increased In Tariff
GAIL (India)'s current integrated tariff stands at Rs 58.61 per million metric British thermal unit. The company currently has filed for a tariff revision to Rs 78 per MMBtu.
This indicates that the company wants a tariff hike of Rs 20 per MMBtu. As per Gupta, a Rs 20 per MMBtu hike would benefit the company by Rs 3,400 crore. Even if one does not consider the future capex and costs filed as a mechanism in the tariff revision document, the company is expecting a boost of Rs 12 per MMBtu, the chairman said. This alone would give the company a big boost. It is key to note, the company expected a Rs 10 per MMBtu hike in the third quarter of fiscal 2025.
Benefit Of Petroleum Board's Proposed Amendments
The latest proposals made by the Petroleum and Natural Gas Regulatory Board, regarding natural gas tariff regulations are very welcomed by the industry and are set to be positive for the entire city gas distribution space, Gupta said.
If the proposal gets accepted, the new guidelines would benefit the isolated networks of GAIL (India), and could give the company a Rs 125 crore to Rs 150 crore boost.
Also Read: GAIL To Exit US Shale Venture
RECOMMENDED FOR YOU
.png 2.png?rect=0%2C0%2C3500%2C1969&w=75)
GAIL India Shares Can Rally 31% Says ICICI Securities Maintaining 'Buy'
Jun 30, 2025
Coal India To Invest Rs 1,067 Crore In Talcher Fertilizers
Jun 27, 2025
Alcohol Prices To Go Up, Expect Upheaval In Next Four Weeks: CIABC On Maharashtra Excise Duty Hike
Jun 11, 2025
Businesses Expect To Pass Along 50% Of Tariffs, Fed Survey Finds
Jun 06, 2025
POPULAR