Delhi sees fourth CNG price hike in 15 days, rates up by Rs 2/kg

NEW DELHI: Commuters and transport operators faced another blow on Tuesday as Compressed Natural Gas (CNG) prices in Delhi were hiked by Rs 2 per kg, marking the fourth increase in less than 15 days. The latest revision came barely days after a Re 1 hike in CNG rates on Saturday.

The repeated increase in CNG prices is expected to impact users of CNG-powered vehicles and public transport fleets, especially in cities such as Delhi and Mumbai where a large number of buses and cabs run on the fuel.





The hike in CNG prices coincided with yet another increase in petrol and diesel rates on Monday, the fourth such revision in under two weeks amid continuing volatility in global crude markets and geopolitical tensions in West Asia.

Following the latest revision, petrol prices in Delhi crossed the Rs 100 mark, rising by Rs 2.61 to Rs 102.12 per litre, while diesel prices climbed by Rs 2.71 to Rs 95.20 per litre. Similar increases were recorded across major metro cities, including Kolkata, Mumbai and Chennai.

In Kolkata, petrol prices rose by Rs 2.87 to Rs 113.51 per litre and diesel by Rs 2.80 to Rs 99.82 per litre. In Mumbai, petrol became costlier by Rs 2.72 and is now priced at Rs 111.21 per litre, while diesel increased by Rs 2.81 to Rs 97.83 per litre. Chennai saw petrol prices rise by Rs 2.46 to Rs 107.77 per litre and diesel by Rs 2.57 to Rs 99.55 per litre.

The latest revision follows three successive fuel price hikes in recent days. Petrol and diesel prices were first increased by Rs 3 per litre each on May 15. Another hike followed on May 19, when prices were raised by 90 paise per litre. On May 23, petrol prices were increased by 87 paise per litre and diesel by 91 paise per litre, making Monday’s revision the fourth hike in less than two weeks.

Fuel prices in India are revised on the basis of international crude and gas prices, exchange rates and local levies. The recent increases come amid elevated global energy prices triggered by ongoing tensions in West Asia and supply concerns that have kept crude oil and natural gas markets volatile.

The back-to-back hikes in CNG, petrol and diesel are likely to increase transport and logistics costs, with possible spillover effects on inflation. Households are also expected to feel the impact through higher commuting expenses and potential increases in prices of goods transported by road.

However, the Centre maintained that it has forgone nearly Rs 14,000 crore in tax revenue after reducing excise duty on petrol and diesel to shield consumers from rising fuel prices, according to Sujata Sharma, Joint Secretary in the Petroleum Ministry. The government had cut central excise duty by Rs 10 per litre on both petrol and diesel on March 27 following a sharp rise in global crude oil prices due to tensions in West Asia.