GAIL, Indraprastha Gas, GSPL & other natural gas-related stocks jump up to 7%; here’s why

Gujarat State Petronet Ltd (GSPL) shares also followed the same trend rising almost 5% on Monday to hit an intraday high of ₹302.6 apiece. The stock closed 1.49% higher at ₹293 per piece on the NSE.

According to a CNBC-TV18 report, the Petroleum and Natural Gas Regulatory Board (PNGRB) has received inputs from the industry committee, regarding suggestions as well as feedback on the regulations controlling tariffs on natural gas.

PNGRB is expected to revise the Natural Gas Pipeline Tariff Regulations, 2008. It has initiated the process to amend the same, while inviting comments from the public on the proposed amendments for regulation on natural gas tariffs by April 11, and a finalisation on this is expected by June 2025.

The proposed reforms aim to bring more flexibility to the tariff structures, particularly through updated cost pass-through mechanisms and volume-based assumptions, according to reports. The proposed changes, if implemented, may lead to an upward revision by up to 20-30% in zone one tariffs, which will benefit PSUs like GAIL, a Mint report suggested.

Market experts believe that if the proposed changes are approved, gas transmission majors like GAIL and Gujarat State Petronet Ltd (GSPL) could witness increased transmission tariffs due to fuel cost changes and contractual LNG pricing, which can now be claimed.

According to Morgan Stanley, the changes proposed could accelerate India’s natural gas adoption, which could thereby raise its share in the energy mix from 6% currently to 15%.