GAIL (India) Limited is set to receive an integrated tariff hike of up to 35% for transporting natural gas, potentially boosting its annual pre-tax earnings by Rs 3,400 crore, according to Chairman Sandeep Kumar Gupta. The levelised tariff for its integrated pipeline network, which carries 90% of the volume, is currently Rs 58.61 per mmBtu. The proposed revision to Rs 78 per mmBtu aims to cover rising operational costs and encourage further infrastructure investment.
GAIL submitted tariff revision details to the Petroleum and Natural Gas Regulatory Board (PNGRB) in August 2024, with a decision expected by early FY 2025-26. The hike considers an annual under-recovery of Rs 1,200 crore due to the diversion of APM gas. The regulator’s volume assessment also suggests a need for upward revision.
The government aims to increase natural gas’s share in the energy mix to 15% by 2030. Expanding pipeline connectivity is expected to drive demand for GAIL’s transportation services. Meanwhile, PNGRB has proposed reducing tariff zones from three to two, benefiting city gas distribution. The revised tariffs will support GAIL’s growth while aligning with the government’s clean energy push.
