The share price of GAIL (India) Ltd witnessed a notable upswing of approximately 5% during the trading session on Monday, April 21, 2025. As of 12:21 PM, the stock showed its sharpest single-day increase since January 2025. On the National Stock Exchange (NSE), GAIL opened at ₹190.50 and moved between an intraday low of ₹188.59 and a high of ₹197.
This marked price action has garnered attention due to its magnitude and the context surrounding it, linked to regulatory developments that could have long-term implications for GAIL’s revenue model.
According to a news report, the rally in GAIL’s share price is closely associated with a consultation paper released by the Petroleum and Natural Gas Regulatory Board (PNGRB). The paper proposes a review of tariffs on natural gas pipeline networks and specifically covers 10 pipelines operated by GAIL.
The timing and scope of this regulatory move have led market observers to track its potential implications for future earnings. Reports indicate that GAIL is seeking a revised levelised tariff of ₹78 per MMBtu—up from the current ₹59 per MMBtu—which would apply retrospectively from 1 January 2025 through to 31 March 2049.
This is not the first time GAIL has pushed for a tariff revision. In June 2024, the company had already proposed a similar hike, citing the need for a sustainable and equitable return on infrastructure investments. The proposed increase would help GAIL better align with operating and capital costs incurred over the projected period.
Even a partial approval, such as a tariff hike to ₹70 per MMBtu, would be considered a step forward, according to the report. Although the final decision remains pending, the very proposal has sparked optimism and renewed investor interest in the stock.
Established in August 1984 by the Government of India, GAIL—formerly known as Gas Authority of India Ltd—was envisioned as a cornerstone in the country’s natural gas infrastructure development. Over the decades, it has diversified its operations across several key segments:
With a strong nationwide presence and a central role in the energy supply chain, any regulatory or pricing change affecting GAIL has a ripple effect across multiple downstream sectors.
The consultation paper released by PNGRB serves as the first step in a regulatory revision process. Stakeholders, including industry participants and consumers, will provide feedback before the Board makes any conclusive amendments to the existing tariff structure.
While it remains to be seen how the final tariffs will be set, the fact that a review is underway is itself significant, especially given the extended time frame over which these tariffs would be applicable.
Read More: GAIL Seeks 26% Stake in US LNG Project and 15-Year Supply Deal Amid Trade Talks
GAIL’s stock movement on April 21, 2025, underscores how regulatory developments can act as catalysts for short-term price movements and potentially long-term structural shifts in the business environment. The PNGRB’s proposal to revise pipeline tariffs places GAIL at the centre of discussions around energy pricing and infrastructure sustainability in India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 21, 2025, 3:04 PM IST
Team Angel One
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