PNGRB Proposes Unified Tariff Across Entities; Positive For GAIL, Status Quo For GSPL: Motilal Oswal

If the proposal of the committee is accepted, it would mean ~42% hike in GAIL’s tariff.
<div class="paragraphs"><p>GAIL India Ltd. (Source: Company website)</p></div>
GAIL India Ltd. (Source: Company website)

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Motilal Oswal Report

According to the amendments brought in late-2022, the Petroleum and Natural Gas Regulatory Board set up an industry committee for determining unified tariff across entities.

This proposal builds in Rs 60.9/metric million British thermal unit as integrated tariff for GAIL India Ltd. against its own proposal of Rs 68/mmBtu; the current implied tariff is at ~Rs 43/mmBtu (nne months-FY23).

The move towards unified tariff is much awaited as it would reduce the tariffs for upcoming pipelines, thus facilitating more capex in pipelines. 

We will not revise our forecasts until the time tariffs are finalised for GAIL India and Gujarat State Peronet Ltd.

Click on the attachment to read the full report:

Motilal Oswal Oil Sector Update.pdf
GAIL - Sharp LNG Price Fall Gives Optimism: Systematix


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