Petronet LNG shares decline nearly 5% as PNGRB raises concerns over tariffs

Petronet LNG Ltd (PLNG) shares dropped sharply by 4.79% on January 2, 2025, trading at ₹330.95, following critical comments from the Petroleum and Natural Gas Regulatory Board (PNGRB) regarding the company’s pricing practices and capital allocation concerns.

Key PNGRB Remarks:

• Profit Concerns: PNGRB accused Petronet LNG of profiting immensely at the cost of gas consumers by annually escalating regasification tariffs at its Dahej terminal.
• Capacity Utilization: With over 90% capacity utilization and significant expansions, PNGRB noted that the company has not passed on the benefits to gas consumers.
• Regulatory Framework: PNGRB has proposed a regulatory framework to bring regasification tariffs charged by LNG import terminals under its purview.

Citi’s Observations:

• 90-Day Downside Watch: Citi has placed Petronet LNG under a 90-day downside watch, citing regulatory risks and potential tariff reforms.
• Capital Allocation Concerns: Citi raised concerns over the company’s capital allocation policies, which the market seems to be overlooking.

Petronet Lng Share Price history