Middle East Conflict Drives CNG Prices Higher

Compressed Natural Gas (CNG) price in Delhi has hiked by Rs 2 per kg to Rs 83.09 per kg. The CNG price hikes totalled to Rs 6 since May 15, and this is the fourth revision in its prices.

The latest increase has come at a time when global energy markets remain under pressure due to tensions linked to the Iran war and disruptions near the Strait of Hormuz, a major route for crude oil and gas shipments. Concerns over supply movement through the region have contributed to rising fuel costs internationally.

Apart from Delhi, CNG prices have also increased in nearby cities. Consumers in Noida, Greater Noida and Ghaziabad will now pay Rs 88.70 per kg. In Gurugram, the revised rate stands at Rs 86.12 per kg, while Mumbai consumers will continue to pay Rs 84 per kg.

Four Increases Within Days

The latest revision follows earlier hikes announced this month. CNG prices were increased by Rs 2 on May 15, followed by a Rs 1 hike on May 18, and another Rs 1 increase on May 23.

The repeated upward revisions are expected to impact commuters and commercial transport operators. Auto-rickshaw drivers, taxi services and cab operators are likely to face higher daily operating costs because of the increase.

Industry observers say higher transport expenses can eventually push up logistics costs, which may affect prices of goods transported across cities.

Rising Fuel Costs Affect Daily Expenses

The latest CNG revision has come alongside higher petrol and diesel prices. In Delhi, petrol is currently priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre.

The increase in fuel prices has started reflecting in household spending patterns, especially for families dependent on road transport for work and daily travel. Higher transportation expenses have also contributed to increased prices of some commonly used items in local markets.

Earlier this month, prices of 19-kg commercial LPG cylinders were also revised upward amid supply concerns linked to the conflict in West Asia. In Delhi, the price of a commercial LPG cylinder has reached Rs 3,071.50.

Transport unions in Delhi-NCR had earlier objected to repeated fuel price hikes, citing the financial burden on commercial vehicle operators. India imports nearly 90 per cent of its energy requirements, making domestic fuel prices vulnerable to global disruptions and geopolitical developments.

FAQs

1. What is the latest CNG price in Delhi?
   The latest CNG price in Delhi is Rs 83.09 per kilogram after the recent Rs 2 increase.

2. How much have CNG prices risen this month?
   CNG prices have gone up by Rs 6 per kg since May 15 through four consecutive hikes.

3. Why are fuel prices increasing currently?
   Fuel prices are increasing due to supply concerns caused by the Iran war and disruptions near the Strait of Hormuz.