GAIL India Tariff Order Impact on Integrated Natural Gas Pipeline Network

GAIL India’s Integrated Natural Gas Pipeline (INGPL) network will see a tariff adjustment effective January 1, 2026, following a Petroleum and Natural Gas Regulatory Board (PNGRB) order. The levelized tariff is set at ₹65.69/MMBTU on GCV basis as an interim measure. This adjustment, subject to future review, is primarily due to system use gas and capacity determination.

New Tariff for Gas Pipeline Network

A new tariff order has been issued for GAIL’s Integrated Natural Gas Pipeline (INGPL) network. The Petroleum and Natural Gas Regulatory Board (PNGRB) set the new tariff, which takes effect on January 1, 2026.

Key Tariff Details

The approved levelized tariff is ₹65.69/MMBTU (on GCV basis). This serves as an interim measure over the existing tariff and primarily accounts for:

  • System Use Gas (SUG), which includes a reduction on account of calorific value.
  • Capacity determination.

These factors are subject to review and potential true-up during the next tariff review, scheduled for April 1, 2028.

Financial Impact

Compared to the previous levelized tariff of ₹58.61/MMBTU, the new tariff represents an approximate increase of 12%. This is expected to have a positive impact of approximately Rs. 1,200 Crore.

Future Adjustments

The current adjustment is limited to SUG and capacity determination. Subsequent reviews will consider other parameters, including actual and future Opex & Capex, transmission loss, working days, revenue-sharing adjustments and regulatory amendments in FY 2027-28, effective April 1, 2028.

Source: BSE

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