CNG Prices Soar by Rs 2 in Delhi Amidst Oil Price Hikes
After three successive hikes over the past two weeks, CNG and fuel prices rise in Delhi, marking additional financial burdens on consumers and transport operators.
Highlights
- •CNG prices hike by Rs 2 per kg in New Delhi
- •Petrol crosses Rs 100 mark at Re 102.12 per litre
- •Fuel price increases impact public transport and logistics industries
- •Government has reduced excise duty to mitigate cost hikes for consumers
New Delhi, India - The prices of Compressed Natural Gas (CNG) soared by Rs 2 per kg in Delhi effective Tuesday morning, marking the fourth price hike within a fortnight. This adjustment brings CNG costs up to Rs 83.09 per kg in New Delhi. CNG is a popular fuel choice for buses and taxis across the city due to its lower emissions profile compared to petrol or diesel.
Following this revision, the price of petrol surged past the Rs 100 mark, rising by Rs 2.61 to reach Rs 102.12 per litre, while diesel increased by Re 2.71 to Rs 95.20 per litre. Similar hikes were observed across major metropolitan cities such as Kolkata, Mumbai, and Chennai, with petrol prices in Kolkata hitting Rs 113.51 per litre, a rise of Re 2.87, and diesel climbing similarly.
The Fuel Price Hike: A Continuation of Recent Trends
This latest increase comes after earlier hikes on May 15, which saw petrol and diesel prices hike up by Rs 3 per litre each, followed by smaller increments on May 19 (petrol up by 90 paise) and May 23 (petrol increasing by 87 paise, while diesel gained 91 paise), culminating in the current revision. The fluctuations are driven by global energy markets' volatility amid geopolitical tensions in West Asia.
The impact of these back-to-back hikes is expected to ripple through multiple sectors, including public transport fleets and logistics companies, which heavily rely on CNG, petrol, and diesel. Households will also experience increased commuting costs and higher prices for goods transported by road as these sectors incur higher operational expenses.
Despite the hikes, the government has maintained that it has waived nearly Rs 14,000 crore in excise duty to shield consumers from rising fuel costs, according to Sujata Sharma, a Joint Secretary of India's Petroleum Ministry. This action was taken after significant increases in global crude oil prices due to tensions in West Asia.
