GAIL Share Price Decline 5.59% Despite PNGRB Approves Tariff Hike

New Delhi, November 28: GAIL’s share price is witnessing negative investor demand today, despite receiving approval for a pipeline tariff hike from the Petroleum and Natural Gas Regulatory Board. As of 11:40 AM, GAIL shares were down by 5.59%, or 10.27 points and were trading at ₹173.53. Until now, the shares have traded within a range of ₹175.04 and ₹171.80. The traded volume for the GAIL stock stood at 3.52 crore shares, with the company’s market cap at ₹1,20,850 crore. The shares have their 52-week high at ₹213.40 and their 52-week low at ₹150.52.

Shares Fall Despite Company Securing PNGRB Approval For Tariff Hike

The fall in the GAIL share price comes despite the company announcing that it has received approval for a pipeline tariff hike from the Petroleum and Natural Gas Regulatory Board. As per the company, PNGRB has allowed GAIL to increase the tariff from ₹58.60 to ₹65.69 per MMBTU. This represents a total tariff hike of 12.1%. However, the approved increase in the tariff is lower than the tariff hike of ₹78, which was requested by GAIL.

Investor Takeaway

The approval for increasing the pipeline tariff from ₹58.60 to ₹65.69 per MMBTU is a positive development, as it will lead to higher transmission revenue for the company. However, investor sentiment turned negative because the approved tariff fell short of GAIL’s expected revision. Market participants will now look for improved sentiment in the coming week to support a recovery in the share price.

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