PNGRB revises GAIL's integrated pipeline tariff to ₹65.69 per mmBtu

GAIL's integrated pipeline tariff has been revised to Rs 65.69 per mmBtu from January 2026 - well below its ask - prompting a sharp market reaction

The integrated pipeline tariff for GAIL (India) was revised to ₹65.69 per million metric British thermal unit (mmBtu) on gross calorific value (GCV) basis, to be effective from January 1, 2026, announced Petroleum and Natural Gas Regulatory Body (PNGRB) on Friday.

 

GAIL’s shares declined 4.19 per cent to ₹176.10 on BSE as the revised tariff was significantly lower than the company’s ask of ₹ 78.72 per mmBtu.

 

The company’s earlier integrated tariff was ₹58.61 per mmBtu.

 

Revising the tariff, PNGRB said that in order to avoid sudden cost increase, true-up of all the parameters was not possible in the current tariff revision.

 

 

“The Members of the Board deliberated and observed that true-up of all the parameters at this stage would lead to sudden significant increase in tariff and can place unexpected financial pressure on customers. At the same time, the interest of the pipeline entity is also to be protected to get them a reasonable return,” said PNGRB.

 

The regulator said truing up of other factors would be done in the next tariff review exercise in financial year 2027-28. The factors include actual operating expenditure (opex) and capital expenditure (capex), future opex and capex, transmission loss, working days, revenue sharing adjustments and other amendments as per regulations.

 

GAIL’s next integrated tariff revision would happen on April 1, 2028.

 

In an effort to reduce costs, PNGRB has sought a roadmap from GAIL on electrification of gas-based compressors. GAIL has partnered with a third-party consultant MECON for conducting a study for complete conversion or replacement of different types of gas-based compressors to electricity-based compressor.

 

The comprehensive study and the draft feasibility report by the consultant is likely to be completed in 5-6 months.

 

A compressor is a critical device used for increasing pressure of natural gas as it travels through a pipeline. It helps in maintaining the flow of gas over long distances and through various terrains.