ONGC, IGL, MGL, GAIL and other socks a mixed bag as regulator approves unified tariff for natural gas
ONGC, GAIL India, Gujarat Gas, MGL, IGL, Petronet LNG, GSPL and other stocks are trading mixed as Petroleum and Natural Gas Regulatory Board (PNGRB) approved levelised unified tariff for a natural gas pipeline of Rs 73.93 per metric million British thermal unit (MMBtu).
Gas companies shares such as Oil and Natural Gas Corporation (ONGC), GAIL India, Gujarat Gas, Mahanagar Gas Limited (MGL), Indraprastha Gas Limited (IGL), Petronet LNG, Gujarat State Petronet Limited (GSPL) among others were a mixed bag on the exchanges during Friday’s session.
The above-mentioned stocks are trading mixed as Petroleum and Natural Gas Regulatory Board (PNGRB) approved levelised ‘unified tariff’ for a natural gas pipeline of Rs 73.93 per metric million British thermal unit (MMBtu), which would be effective from April 1, 2023.
The primary function of PNGRB is to regulate the refining, transportation, distribution, storage, marketing, supply, and sale of petroleum products and natural gas.
Individually, ONGC, Petronet LNG, and IGL shares were in the green up between 1-2.5 per cent, while GSPL, GAIL, and MGL were trading flat and Gujarat Gas was down more than a per cent on the BSE in an otherwise positive market on Friday, March 31, 2023.
The regulator has divided total gas networks into three tariff zones: The first zone is up to 300 km from the gas source, the second is 300 km to 1200 km and the third zone is beyond 1200 km from the Gas source, according to petroleum and natural gas minister Hardeep Singh Puri.
According to Singh’s official Twitter handle, “This tariff mechanism will help India to achieve the ‘One Nation One Grid One Tariff’ model and also propel the gas markets in distant areas.”
“I have been informed that the tariff of customers in the northeast region will reduce by one-fourth and the tariff of customers in the eastern region will be halved,” the petroleum and natural gas minister also said in his tweet.
The regulator on Wednesday said it has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to unified tariff for natural gas pipelines with a mission of "One Nation, One Grid and One tariff".
By "One Nation, One Grid and One tariff", the government aims to boost the consumption of natural gas in the country and increase its share in India`s energy basket from current 6.2 per cent to 15 per cent by 2030.
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