GAIL Share Price Down 6.5% as Tariff Hike Disappoints Investors

Written by: Kusum KumariUpdated on: 28 Nov 2025, 7:43 pm IST

GAIL shares fell 6.5% after PNGRB approved only a 12% tariff hike, lower than expected, hurting sentiment despite interim relief and future review in FY28.

GAIL (India) share price (NSE: GAIL) fell 6.5% on November 28 after the petroleum regulator PNGRB announced a 12% tariff hike for the company’s integrated natural gas pipeline (INGPL).

Though the hike takes effect from January 2026, it fell short of market expectations of 15%, and was far below GAIL’s request for a 33% increase. This gap between expected and actual tariff revisions led to a sharp negative reaction in the stock.

Why the Tariff Hike Disappointed

PNGRB clarified that this is only an interim hike meant to prevent a sudden jump in tariffs.
A full revision will be carried out in the next tariff review in FY28.

According to UBS, the 12% hike comes from adjustments in just 2 areas:

₹5.16/mmbtu added due to higher system-use gas (SUG)
₹1.92/mmbtu added due to lower capacity-based volume

UBS also noted that a 12% tariff hike won’t directly translate into a 12% rise in actual realised tariffs.

GAIL Share Price Movement

GAIL shares slipped to a day’s low of ₹171.80 on the BSE. The overall performance of GAIL has been weak in 2025:

Down 11% in 6 months
Down 9.5% in 2025 YTD
Down 12% in one year

However, the stock has gained 153% over 5 years.

As of 10:30 AM, GAIL was trading 5.9% lower at ₹172.95.

Conclusion

GAIL’s stock drop reflects investor disappointment with a smaller-than-expected tariff hike. Though the hike provides temporary relief, the real impact will be clearer only during the full tariff review in FY28.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Nov 28, 2025, 2:13 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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