The price of Compressed Natural Gas (CNG) has been increased by Rs 2 per kilogram in the national capital, marking the fourth hike in the last two weeks. The revised price came into effect from Friday morning, making CNG costlier for consumers in Delhi and surrounding areas.
Revised CNG Price in Delhi
With the latest increase, the price of CNG in Delhi now stands at Rs 79.56 per kilogram. This is a significant jump from the previous rate of Rs 77.56 per kg. The price revision has been implemented by Indraprastha Gas Limited (IGL), which supplies CNG and piped natural gas in the region.
Reasons Behind the Hike
The continuous increase in CNG prices is attributed to the rise in the cost of natural gas, which is the primary raw material for producing CNG. The hike in global energy prices has led to an upward revision in domestic gas prices, impacting the retail rates of CNG and PNG. IGL has cited the increase in input costs as the reason for the price revision.
This is the fourth time in two weeks that CNG prices have been raised. Earlier, on March 24, the price was hiked by Rs 2 per kg, followed by another increase of Rs 1.50 per kg on March 28, and a further Rs 2 per kg on April 1. The latest hike brings the total increase to over Rs 7 per kg in a span of 15 days.
Impact on Consumers and Public Transport
The price hike is expected to affect a large number of CNG vehicle owners, including those using Delhi's public transport such as buses, auto-rickshaws, and taxis. Many commuters may have to bear the brunt of increased fares as transport operators pass on the additional cost to passengers. The Delhi government has not yet announced any relief measures to cushion the impact of the rising fuel prices.
The increase in CNG prices also comes at a time when petrol and diesel prices have been stable. However, the repeated hikes in CNG rates are putting pressure on the household budgets of those who rely on CNG for their vehicles.
Comparison with Previous Prices
To put the current price in perspective, CNG was available at Rs 73.56 per kg at the beginning of March. The price has now increased by over 8% in just one month. The frequent revisions have raised concerns among consumers about the volatility of fuel prices and the lack of a predictable pricing mechanism.
Industry experts suggest that further increases may be on the horizon if global natural gas prices remain elevated. The government's pricing formula for domestic gas, which is linked to international benchmarks, could lead to more hikes in the coming months.
As of now, IGL has not announced any plans to reduce prices. Consumers are advised to plan their fuel expenses accordingly and consider alternative modes of transport where possible.
