Unified tariff a fresh trigger for GAIL

Will lead to higher realisations, better returns on new investments

The proposal by the Petroleum and Natural Gas Regulatory Board (PNGRB) to put in place a unified tariff for all pipelines is a shot in the arm for GAIL.
 
The stock, which gained nearly six per cent on Friday and another 3.5 per cent on Tuesday to close at Rs 433.60, can see more gains. The Street’s optimism stems from the fact that the new proposal, if accepted, will not only lead to improved tariffs for the company and consequently higher return ratios, but also boost gas demand.
 
Sector regulator PNGRB, has proposed to implement a “unified or