CNG Prices Hike: After the sharp rise in petrol and diesel prices, compressed natural gas (CNG) has now become costlier in several major Indian cities, including Delhi, Mumbai, Ahmedabad, Hyderabad, and Chennai. The latest increase comes amid growing concerns over global fuel supply disruptions linked to tensions around the Strait of Hormuz and the ongoing Iran conflict.
Gas distribution companies have started revising CNG prices upward as global crude oil and natural gas markets remain under pressure. The hike is expected to impact lakhs of daily commuters, auto-rickshaw drivers, cab operators, and transport businesses that rely heavily on CNG-powered vehicles.
In Delhi, the price of CNG has increased by Rs 2 per kg, taking the revised retail price to Rs 79.09 per kg from the earlier Rs 77.09 per kg. Mumbai also witnessed a similar rise, with CNG now costing Rs 84 per kg across the Mumbai Metropolitan Region (MMR).
CNG Prices Increased in Major Cities
The latest fuel revision has affected multiple metro cities where CNG remains one of the most-used transportation fuels.
|
City |
Old CNG Price | New CNG Price | Increase |
|---|---|---|---|
|
Delhi |
Rs 77.09/kg | Rs 79.09/kg | Rs 2/kg |
|
Mumbai |
Rs 82/kg | Rs 84/kg | Rs 2/kg |
The increase comes shortly after oil marketing companies revised petrol and diesel rates across India.
Petrol and Diesel Prices Also Jump
Petrol and diesel prices have already increased sharply in major cities, adding pressure on household budgets and transportation costs.
In Delhi, petrol now costs Rs 97.77 per litre compared to Rs 94.77 earlier, while diesel prices rose to Rs 90.67 per litre.
Other metro cities also witnessed steep increases:
|
City |
Petrol Price | Diesel Price |
|---|---|---|
|
Delhi |
Rs 97.77/litre | Rs 90.67/litre |
|
Mumbai |
Rs 106.68/litre | Rs 93.14/litre |
|
Kolkata |
Rs 108.74/litre | Rs 95.13/litre |
|
Chennai |
Rs 103.67/litre | Rs 95.25/litre |
Fuel retailers attributed the hike to rising international crude oil prices and supply concerns caused by geopolitical instability in the Gulf region.
CNG Price Hike: Auto and Taxi Drivers Fear Bigger Burden
The latest CNG hike is likely to hit public transportation the hardest. Auto-rickshaw and taxi operators in cities like Mumbai and Delhi have warned that rising fuel prices could increase operational expenses significantly.
Following the revision, several auto unions in Mumbai demanded a fare hike.
“Starting midnight tonight, the price of CNG will increase by Rs 2 per kg, bringing the revised rate to Rs 84 per kg in and around the city,” said an MGL official on Wednesday evening.
Autorickshaw unions are reportedly seeking a Re 1 increase in the current base fare of Rs 26 to offset rising fuel costs.
For commercial drivers who consume large quantities of CNG daily, even a small Rs 2 increase per kg could substantially affect weekly earnings.
How CNG Price Hike May Affect Inflation
Economists believe the latest increase in fuel prices may further push inflation upward because transportation costs directly affect the prices of essential goods and services.
When fuel becomes expensive, logistics and supply chain expenses rise. Businesses often pass these higher costs on to consumers, making daily-use products costlier.
Earlier this week, milk prices also increased in several regions, adding to inflation worries among middle-class households.
Experts say higher fuel costs reduce consumers’ spending capacity, which can slow demand in the broader economy. Lower demand may eventually impact production and overall GDP growth.
However, analysts also note that some increase in domestic fuel prices became unavoidable due to the surge in global crude oil and gas prices following the Iran conflict and disruptions in maritime trade routes near the Strait of Hormuz.
CNG Price Hike: Why Global Markets Are Watching the Hormuz Situation Closely?
The Strait of Hormuz remains one of the world’s most critical oil shipping routes. Any disruption in the region directly impacts global crude oil supply and energy prices.
The ongoing tensions involving Iran have already triggered volatility in international energy markets, forcing several countries, including India, to adjust fuel prices domestically.
India imports a large portion of its crude oil requirements, making local fuel prices highly sensitive to global market movements.
