The tariff for the High Pressure Gas grid of GSPL has been reduced to Rs.18.10/MMBTU (for 01.05.2024 onwards) from Rs. 34/MMBTU (for 2018 to 31.01.2024). This is a sharp reduction of around 46% from previous tariff. The company had proposed a tariff of Rs. 50.77/MMBTU and the final approved tariff is Rs. 18.10/MMBTU by PNGRB. Historically also the approved tariff by PNGRB has been lower than the submitted tariff by GSPL.
This reduction can lead to big drop in standalone revenues and profitability of GSPL.
The order also mentions a possible revision in tariff next year if actual volume is very different from the expected volume considered by PNGRB (31.67 MMSCMD). The company while proposing 50.77/MMBTU has considered 26 MMSCMD.