Gail rallies 18% in 3 days after PNGRB simplifies gas pipeline tariff
Shares of Gail (India) jumped 8 per cent to Rs 120 on the BSE on Wednesday on the back of heavy volumes in an otherwise subdued market. Trading volumes on the counter nearly doubled with a combined 61 million equity shares changing hands on the NSE and BSE till the time of writing of this report. In comparison, the S&P BSE Sensex was down 0.21 per cent at 44,563 points at 12:35 pm. The stock was trading at its highest level since February 20, 2020. It touched 52-week high of Rs 133 on January 16, 2020.
In the past three trading days, the stock of Gail (India) has rallied 18 per cent after oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for unified gas transmission tariff structure. The tariffs will be applicable based on two zone structure related to distance from source of gas. In the past one month, the stock has surged 42 per cent as against a 12-per cent rise in the S&P BSE Sensex.
PNGRB has notified finalised regulations for city gas distribution (CGD) networks regarding common carrier. Key highlights include open access will be implemented in geographical areas (GAs) where marketing exclusivity has ended; capacity in open access shall be at least 20 per cent of capacity of the CGD network and compression capacity or the maximum quantity of gas that has flowed in the CGD network or through compressors even for a period of one day in the past, whichever is higher, CNG or LCNG stations run by dealers and franchises of authorised entities shall not be considered as third party shipper for the purpose of allowing access.
