The unified tariff order for GAIL is expected within the next two months, member of the Petroleum and Natural Gas Board (PNGRB), AK Tiwari, told CNBC-TV18 exclusively.In the exclusive interaction on Tuesday, July 8, Tiwari that the tariff orders are in process and consultation process has also concluded.
“There are some important pipeline operators, like GAIL and Pipeline Infrastructure. Their tariff orders are in process. The public consultation has already been concluded. That is also on the cards. So we will bring the tariff order for these together. We want to synchronize this because issuing tariff orders again and again is not ideal,” Tiwari said.
Multiple brokerage reports have indicated that GAIL has put forward a recommendation for a 33% increase for them. Tiwari mentioned that their endeavour is to ensure reasonable returns to pipeline operators”Maybe a balancing approach will be adopted,” Tiwari said, adding that the PNGRB has already bought regulations on how to reduce the cost of system use gas.
“There are some important pipeline operators, like GAIL and Pipeline Infrastructure. Their tariff orders are in process. The public consultation has already been concluded. That is also on the cards. So we will bring the tariff order for these together. We want to synchronize this because issuing tariff orders again and again is not ideal,” Tiwari said.
Multiple brokerage reports have indicated that GAIL has put forward a recommendation for a 33% increase for them. Tiwari mentioned that their endeavour is to ensure reasonable returns to pipeline operators”Maybe a balancing approach will be adopted,” Tiwari said, adding that the PNGRB has already bought regulations on how to reduce the cost of system use gas.
“They have to plan for 75% of their estimated quantity—whether sourced domestically or from the international market—on a long-term basis for three years. They have to allocate the least-cost option available for system use gas so that the cost can be reduced. All these factors are being analyzed, and we are going to take a view and conclude the tariff order very soon,” Tiwari said.
Shares of GAIL are trading 0.3% lower on Tuesday at ₹192.64. The stock has remained flat so far in the last one month, and on a year-to-date basis.
