GAIL Shares Plunge Over 6% On Lower Than Expected PNGRB Transmission Tariff Revision
PNGRB has not factored in any potential increase in capital expenditure at this stage.
GAIL's share price saw a steep drop of over 6% in early trade on Friday, as the Petroleum and Natural Gas Regulatory Board has completed its review and approved GAIL’s integrated pipeline tariff.
Against GAIL’s claimed tariff of Rs 77.98 per mmbtu, PNGRB has set the tariff at Rs 65.69 per mmbtu.
Street expectations were in the range of Rs 67–70 per mmbtu, making the approved tariff slightly lower than anticipated.
PNGRB has not factored in any potential increase in capital expenditure at this stage. The revision only accounts for higher costs related to System Usage Gas.
For future capex and other operating expenses, PNGRB has clarified that these will be considered during the next tariff review, which will take effect from April 1, 2028.
(This is a developing story).
