IGL Seen as Key Beneficiary of PNGRB Tariff Restructure; MGL, GGL Could Feel the Heat
The Petroleum and Natural Gas Regulatory Board (PNGRB) has introduced changes to its pipeline tariff regulations, aiming to streamline the natural gas distribution framework. While the intent is to make gas more affordable and accessible, analysts believe the impact will differ significantly across companies.
According to market experts, Indraprastha Gas Ltd (IGL) stands to gain the most from the new tariff regime, as it may allow the company to charge higher transmission tariffs. On the other hand, Mahanagar Gas Ltd (MGL) and Gujarat Gas Ltd (GGL) could face challenges due to reduced margins and less favorable tariff alignments.
One of the core changes implemented by PNGRB is the reduction of pipeline tariff zones from three to two. This structural shift is designed to simplify pricing and encourage wider gas adoption, especially among industrial and city gas distribution (CGD) consumers.
The revision, announced last Friday, is part of PNGRB’s broader efforts to rationalize gas transportation costs and boost demand across regions. However, analysts caution that the real-world impact will vary based on geographical exposure and existing infrastructure of each CGD player.
While the long-term effects remain to be fully assessed, early market reactions show optimism for IGL and caution for MGL and GGL investors.
