Shares of GAIL India witnessed a sharp rise of nearly 7% on March 24, 2025, following the PNGRB’s move to seek public feedback on proposed natural gas tariff amendments. These changes are expected to significantly impact gas transmission companies like GAIL by potentially increasing tariffs and improving revenue streams.

Impact on GAIL India Share Price

Following the news, GAIL’s stock saw an intraday surge of 6.7%, reaching a high of ₹186.56 on March 24, 2025. Despite this rally, the stock remains about 24% below its 52-week high of ₹246.35, recorded in July 2024. Earlier this month, it touched a 52-week low of ₹150.60.

Over the past year, GAIL’s stock performance has been volatile, with a 17% rise in March after experiencing consecutive monthly declines, including a 12% drop in February and a 7.3% decline in January.

PNGRB’s Proposed Tariff Reforms

The Petroleum and Natural Gas Regulatory Board (PNGRB), has introduced amendments to the Natural Gas Pipeline Tariff Regulations of 2008 and invited public comments on these changes until April 11, with a final decision expected by June 2025. The key highlights of these reforms include:

  • Reduction of zonal tariff structure from three zones to two.
  • Tariff calculations are based on contracted prices of domestic gas or liquefied natural gas (LNG).
  • Adjustments in cost pass-through mechanisms for better flexibility.

These changes aim to streamline pricing models and encourage greater natural gas usage across industries. If approved, the new framework could lead to a 20-30% rise in zone one tariffs, directly benefiting major gas transmission firms, including GAIL.

Future Outlook of GAIL India

In addition to potential tariff increases, GAIL’s diversification into petrochemicals—expanding its capacity from 810 ktpa to 2.7 mmtpa by FY27—is expected to support long-term growth. The final impact of these reforms will depend on the PNGRB’s decision in June 2025

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