Gas transmission cos jump as regulator simplifies gas pipeline tariff

Mumbai: Shares of gas transmission companies rallied up to 14 per cent on Friday after the regulator notified regulations for unified gas transmission tariff structure and simplified it.

At 3:04 pm, Gujarat Gas was up 1.85 per cent at Rs 350.50, while Indraprastha Gas climbed 10.48 per cent to Rs 494.40. Mahanagar Gas rose 13.94 per cent to Rs 1,059.40, while Gujarat State Petronet climbed 6.31 per cent to Rs 218.95. Gail was up 0.34 per cent at Rs 103.10, while Adani Gas rallied 9.99 per cent to Rs 348.05

Oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has simplified the country's gas pipeline tariff structure to make the fuel more affordable for distant users and to attract investment for building gas infrastructure.


PNGRB has notified regulations for a 'unified' tariff structure for over a dozen pipelines that form the National Gas Grid which will lead to a 20-30 per cent rise in transportation charges paid by users near the source but a reduction for consumers in the hinterland.

Currently, the tariff is levied in proportion to the distance transported - the longer the distance, the higher is the charge. This resulted in consumers away from the coast paying higher charges as compared to those near it.

PNGRB has now notified a two-zone tariff structure - Zone-1 will be 300-km from the source of gas (gas field or LNG import terminal) and Zone-II will be beyond that.

PNGRB said the tariff for the first tariff zone will be 40 per cent of the tariff for the second zone.