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.
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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.
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