Compressed Natural Gas (CNG) prices in Delhi-NCR were increased by Re 1 per kilogram on Saturday, marking the third hike in the last 10 days amid rising global energy costs linked to the ongoing Middle East crisis. Following the latest revision, CNG in Delhi now costs Rs 81.09 per kg, while consumers in Noida and Ghaziabad will pay Rs 89.70 per kg.
The latest increase follows earlier revisions of Rs 2 per kg on May 15 and another Re 1 per kg on May 18. State-run oil companies have been gradually passing on the burden of higher international energy prices to consumers after maintaining relative price stability for an extended period. Revised rates in other cities now stand at Rs 86.12 per kg in Gurugram and Rs 90.44 per kg in Ajmer.
Officials and industry observers say the continued increase in CNG prices is likely to affect transportation costs and contribute to retail inflation. A significant portion of public transport vehicles, including buses, taxis and auto-rickshaws in Delhi-NCR, operate on CNG, raising concerns that the higher operating expenses may eventually be transferred to commuters through increased fares.
Also Read: India Hikes Petrol, Diesel And CNG Prices Amid Global Oil Supply Concerns
The rise in domestic gas and fuel prices has been linked to disruptions in global energy markets caused by tensions in the Middle East and concerns surrounding the Strait of Hormuz, a critical shipping route that handles nearly one-fifth of the world’s oil supply. The elevated international crude and gas prices have increased procurement costs for Indian oil marketing companies, putting pressure on domestic pricing structures.
State-run oil marketing companies including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have reportedly been incurring heavy losses due to the widening gap between global purchase costs and controlled domestic retail prices. Reports suggest the companies have been losing nearly Rs 1,600 crore daily while absorbing part of the burden to shield consumers from sharper increases.
The government has so far avoided imposing steep fuel price hikes in an effort to keep inflation under control. Last week, Prime Minister Narendra Modi urged citizens to conserve fuel and adopt remote working practices where possible, describing such measures as important steps towards reducing crude oil demand and limiting India’s foreign exchange outflow amid volatile global energy conditions.
Also Read: Tesla To Open Sales And Service Facility In Hyderabad Amid India Expansion