GAIL Share Price Plunges 5% After Regulatory Setback
GAIL (India) Limited’s share price fell sharply by 5.27% to INR 174.12 on Thursday after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved a significantly lower integrated pipeline tariff than what the company had requested.
Key Takeaways
- GAIL stock dropped over 5% following PNGRB’s tariff decision.
- The approved tariff of INR 65.69/mmbtu was below both GAIL’s claim and market expectations.
- The lower rate is anticipated to negatively affect the company’s near-term revenue.
Tariff Details
The PNGRB fixed the integrated pipeline tariff at INR 65.69 per mmbtu, which is substantially lower than GAIL’s claimed rate of INR 77.98 per mmbtu. This approved rate also fell below market expectations, which had anticipated a tariff in the range of INR 67-70 per mmbtu.
Market Impact
The lower-than-expected tariff approval triggered a sharp decline in investor sentiment, with analysts predicting a direct impact on GAIL’s near-term revenue streams. The stock’s significant drop reflects market concerns about the financial implications of this regulatory decision on one of India’s leading natural gas companies.
