GAIL stock takes 12% knock on tariff revision, modest uptick in HVJ levy

The company will continue to benefit from growth in gas volumes, led by strong demand, higher availability, and marketing profits

GAIL (India) lost nearly 12 per cent on the bourses to its three-month lows after the regulator revised transmission tariffs. Petroleum and Natural Gas Regulatory Board (PNGRB) announced the much awaited revised tariff orders for GAIL’s pipeline networks that include Hazira-Vijaipur-Jagdishpur (HVJ network), Dahej-Vijaipur, Vijaipur-Dadri, provisional tariff for under-construction Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL), and Mumbai Regional Natural Gas Pipeline Network. 

The major disappointments were on account of the regulator’s integrated tariffs for HVJ network (both for the old network as well as the upgraded part) and provisional tariff for JHBDPL network. HVJ network remains important as it transmits about 60 per