Commuters and transport operators in Delhi faced another setback on Tuesday as the price of Compressed Natural Gas (CNG) was increased by Rs 2 per kilogram, marking the fourth such hike in less than 15 days. This latest revision comes just days after a Re 1 increase in CNG rates on Saturday. The repeated price hikes are expected to significantly impact users of CNG-powered vehicles, including public transport fleets, particularly in major cities like Delhi and Mumbai where a substantial number of buses and taxis rely on this fuel.
Petrol and Diesel Prices Also Rise
The CNG price hike coincided with another increase in petrol and diesel rates on Monday, the fourth revision in under two weeks amid ongoing volatility in global crude markets and geopolitical tensions in West Asia. Following the latest adjustment, 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 other major metropolitan cities, including Kolkata, Mumbai, and Chennai.
City-Wise Fuel Price Breakdown
- Kolkata: Petrol rose by Rs 2.87 to Rs 113.51 per litre; diesel increased by Rs 2.80 to Rs 99.82 per litre.
- Mumbai: Petrol became costlier by Rs 2.72, now priced at Rs 111.21 per litre; diesel increased by Rs 2.81 to Rs 97.83 per litre.
- Chennai: Petrol prices rose by Rs 2.46 to Rs 107.77 per litre; diesel increased by Rs 2.57 to Rs 99.55 per litre.
Sequence of Recent Fuel Hikes
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, with prices 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.
Reasons Behind the Price Increases
Fuel prices in India are revised based on international crude and gas prices, exchange rates, and local levies. The recent increases are attributed to elevated global energy prices triggered by ongoing tensions in West Asia and supply concerns that have kept crude oil and natural gas markets volatile.
Economic Impact
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 central government 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.
