GAIL Share Price Falls Sharply After PNGRB Delays Tariff Hike to 2026; Brokerages Call Increase Disappointing

Shares of GAIL (India) Ltd, also known as Gas Authority of India Limited, declined as much as 6.3% to Rs 172.22 per piece on the National Stock Exchange (NSE) during early trade on Friday, November 28. The fall came after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved an increase in the company's pipeline tariff to Rs 65.69 per MMBtu, up from Rs 58.60 per MMBtu.

GAIL Share Price Today

Shares of GAIL (India) Ltd were trading at Rs 173.96 as of 9:50 am on November 28, reflecting a sharp decline of Rs 9.84, or 5.35%. The stock opened lower at Rs 172.22, which also marked the day's lowest level in early trade.

During the morning session, GAIL shares touched an intraday high of Rs 175.04, but the overall trend remained weak following news related to pipeline tariff revisions. The stock has been experiencing volatility within its broader 52-week range.

Over the past year, GAIL has traded between a 52-week high of Rs 213.40 and a 52-week low of Rs 150.52, indicating that the current price is closer to the lower end of its annual range.

Revised Pipeline Tariff to Apply from Jan 2026

According to reports, the revised tariff will become effective from January 1, 2026, instead of January 1, 2025, which the company had initially proposed. The regulator further stated that the next tariff review will be carried out on April 1, 2028.

Should You Buy, Hold or Sell GAIL Stocks? Check Top Brokerages' Recommendation

Despite the increase, leading global brokerages such as UBS and Citi noted that the hike fell short of market expectations. Citi said in its report that after months of delay, PNGRB has finally announced a 12% hike in integrated natural gas pipeline (INGPL) tariffs, effective January 2026.

However, this was below the 15% increase factored into analysts' forecasts and significantly lower than the 33% tariff hike sought by GAIL.

The regulator clarified that the decision to limit the hike was aimed at smoothing out tariff changes and preventing any sudden burden on consumers. PNGRB added that a more comprehensive reflection of adjustments across parameters would be made only during the FY28 tariff review cycle.

Citi, despite describing the hike as moderate, believes the development should eventually support a positive stock reaction. It added that the move may also accelerate the implementation of the unified tariff regime, which is viewed as a significant positive for Indraprastha Gas Ltd (IGL).

UBS, however, expressed disappointment with the announcement. The brokerage pointed out that a 12% revision in announced tariffs does not translate into an equal increase in realised tariffs for GAIL. It explained that the latest revision reflects changes only in two key parameters:

• An increase of Rs 5.16 per MMBtu due to higher system-use gas (SUG)
• Another increase of Rs 1.92 per MMBtu owing to a lower volume divisor based on the latest capacity assessment.

UBS added that PNGRB has deferred the review of several other tariff determinants to FY28, noting that a full true-up of all parameters at this stage would have led to a substantial tariff increase and potentially imposed unexpected financial strain on customers.

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