Gujarat State Petronet shares declined 20%. This happened after Petroleum and Natural Gas Regulatory Board cut pressure transmission tariff. The tariff was cut by 47% on Gujarat State Petronet’s Gujarat pipeline network.
The new approved tariff is Rs 18.1 per million metric British thermal unit. Gujarat State Petronet had asked for Rs 34 per million metric British thermal unit.
The significantly lower tariff that has been set by the regulatory board caused key brokerages to cut the company rating. It is also important to add that the tariff order sets the prices that can be charged by the Company for the transport of natural gas in its pipeline network.
The regulatory board’s decision could significantly impact India’s natural gas market.
As of 10:05 am, the shares were trading 20% lower at ₹302.15 on NSE.
Gujarat State Petronet is state government-owned oil and gas company under the ownership of Department of Energy and Petrochemicals, Government of Gujarat.
