Gujarat Gas, GAIL, and Petronet LNG stocks may gain if natural gas is included in GST

Jefferies highlighted that including natural gas under GST could benefit companies like Gujarat Gas Ltd, GAIL (India) Ltd, and Petronet LNG Ltd. \r

The move could potentially reduce natural gas costs by $0.8-0.9 per mmBtu, boosting adoption rates and enhancing GAIL's transmission and trading volumes in the medium term. GAIL could see a 2 percent rise in consolidated EBITDA, Gujarat Gas's competitiveness relative to propane could improve by 6 percent, either boosting volumes or margins, and Petronet LNG may experience increased LNG demand. \r

The brokerage anticipates gas companies passing most savings to consumers, aligning with GST objectives, particularly benefiting states like Andhra Pradesh, Gujarat, Uttar Pradesh, and Rajasthan, potentially enhancing prospects for GST inclusion discussions.