PNGRB approved a levelized tariff of ₹65.69/MMBTU for GAIL's INGPL network (up 12% from ₹58.60), effective Jan 1, 2026. The hike delivers ₹12 billion positive revenue impact despite falling short of GAIL's ₹78/MMBTU ask, balancing costs with customer affordability.
The Petroleum and Natural Gas Regulatory Board (PNGRB) published its tariff order for GAIL's Integrated Natural Gas Pipeline (INGPL), approving a levelized tariff of ₹65.69 per MMBTU—12% higher than the prior ₹58.60/MMBTU. Effective January 1, 2026, the revision incorporates ₹5.16/MMBTU for elevated system-use gas (SUG) and ₹1.92/MMBTU from updated capacity/volume adjustments.
GAIL had petitioned for ₹77.98-78/MMBTU in August 2024 to cover rising opex/capex, but PNGRB deferred full true-up (other parameters) to April 2028 review, citing customer burden concerns. The ~₹12 billion annual uplift supports GAIL's transmission earnings (90% network volume), amid Q2 pressures from trading/petrochem volatility.
Shares dipped 6-7% post-announcement as the hike lagged street expectations (₹67-70/MMBTU), though analysts see sustained positivity from long-term gas demand growth targeting 15% energy mix by 2030.
Key highlights
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New tariff: ₹65.69/MMBTU (vs ₹58.60; +12.1%).
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Effective: Jan 1, 2026; next review Apr 2028.
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Revenue boost: ~₹12 Bn annually for INGPL network.
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Drivers: Higher SUG (+₹5.16); volume/capacity tweaks (+₹1.92).
Sources: Business Standard; Upstox; ScanX; NDTV Profit; PNGRB Tariff Order.