Indian gas companies gain on report of beneficial change in natgas taxes

Petronet LNG

11/06/2024 11:41

** Shares of Gujarat Gas  GGAS.NS , Petronet LNG  PLNG.NS 
and Gail  GAIL.NS  close 2% to 4.3% higher
    ** India's newly elected government to try and bring petrol,
diesel and natgas under goods and services tax (GST), ETNow
reports, citing Oil Minister Hardeep Puri
    ** These fuels are currently subject to value-added tax
(VAT) and other taxes set by the centre and each state
    ** GST will bring a uniform tax rate that could lower natgas
prices and aid faster adoption, analysts say
    ** Jefferies estimates GST could lower natgas costs
$0.8-0.9/mmbtu, improving competitiveness to naphtha, fuel oil
    ** Companies to pass on most benefits to consumers per
stated GST objectives, says Jefferies
    ** 3 of the 4 biggest states benefiting from VAT are part of
newly elected coalition, improving chance of tax change,
brokerage notes

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))