IGL, GAIL, GSPL crash on fears of tariff revision

Moneycontrol Bureau

The Indraprastha Gas (IGL) stock shed 39% to Rs 220 after the Petroleum and Natural Gas Regulatory Board (PNGRB) directed it to  refund excess tariff.

IGL currently charges a network tariff of Rs 104.05 per MMBTU (million British thermal Units). In addition, it also levies compression charges at Rs. 6.66 per kg for compressed natural gas (CNG).

However, reports suggest that the tariff was very high compared to the extent PNGRB notified rates.

PNGRB had notified a network tariff of Rs 38.58 per MMBTU and a CNG compression charge of Rs 2.75 per kg from April 1, 2008.

Hence PNGRB directed IGL to reduce its selling prices and refund the difference in the two tariffs with immediate effect.

The regulator also said that it will issue directions on how the company should refund the excess tariff charged to customers for the last four years at a later date.

Meanwhile, shares of other gas companies also tumbled anything between 8-10% following this news. For instance, Gujarat State Petronet slipped 8% to Rs 70.60 and Gas Authority of India was also down 4% on fears that other similar directives would be introduced for them too.