GAIL's Pipeline Tariff Hike: PNGRB Approves 12.1% Increase

2 min read     Updated on 28 Nov 2025, 09:21 AM
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Overview

GAIL (India) Limited has received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) for a pipeline tariff increase. The tariff has been raised from ₹58.60 to ₹65.69 per Million British Thermal Units (MMBTU), representing a 12.1% hike. While significant, this increase falls short of GAIL's initial request for ₹78 per MMBTU. The tariff adjustment is expected to impact GAIL's revenue, operational sustainability, and potentially influence market dynamics in India's natural gas sector.

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*this image is generated using AI for illustrative purposes only.

GAIL (India) Limited , the country's largest natural gas transmission company, has received approval for a significant pipeline tariff increase from the Petroleum and Natural Gas Regulatory Board (PNGRB). This development marks a crucial change in the company's pricing structure, potentially impacting its revenue stream and operational dynamics.

Tariff Increase Details

The PNGRB has greenlit an increase in GAIL's pipeline tariff, raising it from ₹58.60 to ₹65.69 per Million British Thermal Units (MMBTU). This adjustment represents a 12.1% hike from the previous tariff rate.

Aspect Previous Tariff Approved Tariff Percentage Increase
Pipeline Tariff (₹/MMBTU) 58.60 65.69 12.1%

Regulatory Perspective

It's worth noting that while the PNGRB has approved an increase, the new tariff falls short of GAIL's initial request. The company had sought a higher rate of ₹78 per MMBTU, indicating that the regulatory body has taken a balanced approach in its decision-making process.

Tariff Rates Amount (₹/MMBTU)
Previous Tariff 58.60
GAIL's Requested Tariff 78.00
PNGRB Approved Tariff 65.69

This decision by the PNGRB reflects its role in balancing the interests of both the service provider (GAIL) and the consumers. The approved tariff increase aims to support GAIL's operational costs while keeping the price point below the company's requested level.

Implications for GAIL and the Market

The tariff hike is expected to have several implications:

  1. Revenue Impact: The 12.1% increase in pipeline tariff could potentially boost GAIL's revenue from its gas transmission business.
  2. Operational Sustainability: The higher tariff may help GAIL better manage its operational costs in the face of rising expenses.
  3. Market Dynamics: This change could influence the pricing structure in the natural gas market, potentially affecting both suppliers and consumers.

As the largest natural gas transmission company in India, GAIL's tariff adjustments can have far-reaching effects on the energy sector. Stakeholders across the natural gas value chain will likely be monitoring how this tariff increase impacts the market dynamics and GAIL's financial performance in the coming quarters.

While the approved tariff increase is significant, it's important to note that it's lower than what GAIL had initially requested. This suggests that the PNGRB is striving to maintain a balance between ensuring the financial health of key players like GAIL and preventing excessive cost burdens on consumers.

As the implementation of this new tariff structure unfolds, industry observers will be keen to see how it influences GAIL's operational strategies and the broader natural gas market in India.

Historical Stock Returns for GAIL

1 Day5 Days1 Month6 Months1 Year5 Years
-5.06%-4.64%-2.22%-10.21%-11.29%+136.45%

GAIL India's Board Composition Shifts as Government Nominee Director Steps Down

1 min read     Updated on 22 Nov 2025, 04:28 PM
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Reviewed by
Jubin VScanX News Team
Overview

GAIL (India) Limited, a Maharatna PSU, has reported that Ms. Kamini Chauhan Ratan has stepped down from her position as Government Nominee Director, effective November 22, 2025. This change was directed by the Ministry of Petroleum & Natural Gas. The company has disclosed this information in compliance with SEBI regulations.

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*this image is generated using AI for illustrative purposes only.

GAIL (India) Limited , a Maharatna PSU, has announced a significant change in its board composition. Ms. Kamini Chauhan Ratan, who served as a Government Nominee Director, has stepped down from her position effective November 22, 2025. This development comes following a directive from the Ministry of Petroleum & Natural Gas.

Key Details of the Directorate Change

Aspect Detail
Outgoing Director Ms. Kamini Chauhan Ratan
Position Government Nominee Director
Effective Date November 22, 2025
DIN 09831741
Reason Directive from Ministry of Petroleum & Natural Gas

Implications and Compliance

The cessation of Ms. Ratan from the board was initiated through a letter from the Ministry of Petroleum & Natural Gas (No. A-22012/1/2018-Estt-PNG, E-25372 dated 20.11.2025). This change in directorate is a significant event for GAIL (India) Limited, potentially affecting the company's governance structure and decision-making processes.

In adherence to regulatory requirements, GAIL (India) Limited has promptly disclosed this information in compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. This transparency ensures that shareholders and the market are kept informed of important changes in the company's leadership.

About GAIL (India) Limited

GAIL (India) Limited, recognized as a Maharatna company, is a government-owned natural gas corporation. As a key player in India's energy sector, any changes in its board composition are closely watched by investors and industry observers. The departure of a Government Nominee Director may signal potential shifts in the company's strategic direction or governance approach.

Historical Stock Returns for GAIL

1 Day5 Days1 Month6 Months1 Year5 Years
-5.06%-4.64%-2.22%-10.21%-11.29%+136.45%
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