GAIL India Share Price Jumps as PNGRB Proposes Tariff Reforms

On March 24, 2025, Indian equity benchmark indices continued their upward momentum. The Nifty 50 traded above the 23,600 mark, while the Sensex surged over 1%, rising by 830 points by mid-morning.

Among sectoral performers, the BSE Oil & Gas index stood out, gaining over 1.5% as of 11:40 AM. Notably, all constituents were trading in the green, with GAIL India emerging as the top performer.

GAIL India Share Price Jumps Nearly 4%

Shares of GAIL India Ltd were buzzing on the bourses, rising nearly 4% as of 11:41 AM. The stock’s surge is being attributed to fresh regulatory developments from the Petroleum and Natural Gas Regulatory Board (PNGRB), which could impact the company’s core transmission business.

PNGRB Seeks Comments on Gas Tariff Reforms

The PNGRB has invited public comments on proposed amendments to the Natural Gas Pipeline Tariff Regulations, 2008. The board has already received suggestions from the industry and is now seeking wider feedback.

These proposed changes aim to introduce greater flexibility in tariff determination, specifically through updated cost pass-through mechanisms and volume-based pricing assumptions.

The public consultation is open until April 11, 2025, and a final decision is anticipated by June 2025, according to the official report.

Key Proposed Amendments: What’s Changing?

As per the report, the amendments propose a shift to tariff computation based on contracted prices of either domestic gas or LNG, offering a potentially more transparent and responsive model.

Another key proposal involves reducing the zonal tariff structure from three zones to two, which could simplify operations and favour large-scale players like GAIL.

Potential Impact on GAIL 

According to the report, if the proposed framework is approved, Zone 1 tariffs could increase by 20-30%. This move may directly benefit gas transmission companies by boosting revenue in the early-stage zones of pipeline networks.

Conclusion

While these changes are still under consultation, the market has already responded with enthusiasm, reflecting positive investor sentiment towards companies likely to benefit.

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