GAIL share price plunges 6.5%. Why is the Maharatna PSU stock falling despite hike in tariffs?

GAIL share price: Shares of Maharatna public sector undertaking (PSU) GAIL (India) Limited tanked 6.5% in early trade on Friday, November 28, after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved a tariff hike that came in below both market expectations and the company’s own proposal, denting investor sentiment.

After several months of delay, PNGRB has announced a 12% hike in tariffs for GAIL’s integrated natural gas pipeline (INGPL), with effect from January 2026. However, this hike is below expectations of 15% and well below the 33% hike that GAIL was seeking.

PNGRB has, however, clarified that in order to smooth out tariff hikes and to avoid a sudden increase, it has decided to provide only interim relief to GAIL for now and will fully reflect adjustments to all other parameters in the next tariff review in FY28.

The current hike in tariffs reflects a revision in only two parameters, said UBS: an increase of ₹5.16/mmbtu on account of higher system-use-gas (SUG), and an increase of ₹1.92/mmbtu on account of a lower volume divisor as per the latest capacity determination.

The brokerage further noted that the hike of 12% does not mean an equal increase in realised tariffs, and that figure could be lower.

GAIL share price

Shares of GAIL India hit the day's low of ₹171.80 on the BSE today, a fall of 6.5% from its last closing price of ₹183.80. However, global brokerages UBS and Citi maintained their 'Buy' calls on the PSU stock with a target of ₹215.

GAIL share price performance has been muted in the last year, with the stock trading in the red in different time frames. It has lost 11% in six months, 9.5% in 2025 so far and 12% in a year. Despite this, GAIL share price has risen 153% in five years as per BSE data.

From a technical perspective, the stock has fallen below the 200-DSMA, suggesting a heightened level of vulnerability to this recent development, said Osho Krishan, Sr. Analyst, Technical and Derivatives at Angel One Ltd.

"The intermediate support level is positioned around 170-167, which is anticipated to provide some degree of stability. However, a further decrease may jeopardise the structural integrity of the chart," he said. On the upside, several resistance levels are identified within the range of 175 to 179, with a bearish gap extending toward the 183 zone. The immediate outlook appears bleak, and it is advisable to exercise caution, the expert advised.

As of 10.30 am, GAIL shares were trading 5.90% lower at ₹172.95 apiece.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.