The Petroleum and Natural Gas Regulatory Board (PNGRB) is likely to issue
GAIL
’s unified tariff order within the next two months. The consultation phase is done, and the regulator is aiming to release tariff orders for both GAIL and Pipeline Infrastructure Ltd simultaneously to maintain consistency. GAIL has requested a ~33% hike, but PNGRB is expected to take a balanced stance allowing fair returns while keeping system costs in check. Operators will now be required to secure 75% of their gas requirements through long-term contracts (domestic or international) to ensure cost efficiency. This decision will be important for GAIL as it directly influences its gas transmission margins, and the outcome could shape near-term investor sentiment around regulated returns and volume growth.
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Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.