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GAIL Shares Drop After PNGRB Approves Smaller-Than-Sought Pipeline Tariff

Brokerages view the interim move as consumer‑focused, leaving limited near‑term earnings support.

Overview

  • PNGRB raised the integrated pipeline tariff to Rs 65.69 per mmBtu from Rs 58.60, below GAIL’s request for Rs 78 per mmBtu.
  • The increase takes effect on January 1, 2026, with a comprehensive tariff review and true‑up deferred to April 1, 2028.
  • GAIL’s stock fell as much as about 6% in early trade and was down 5.32% at Rs 174.03 on the BSE around 9:56 am.
  • Citi called the 12% hike lower than its assumptions and noted the regulator chose an interim adjustment that will be revisited in FY28.
  • UBS said realised tariff gains may lag the headline increase because only select components were revised, reflecting an effort to avoid a sharp consumer impact.