GAIL Share Price Down 6.5% as Tariff Hike Disappoints Investors

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.

Read More, Best Paint Stocks in Dec 2025 - Asian Paints, Berger Paints India & More – Net Profit Margin Basis!

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.