In a fresh blow to consumers, compressed natural gas (CNG) prices in Delhi have been increased by Rs 2 per kilogram, following a recent surge in petrol and diesel rates. The price revision comes amid the ongoing Hormuz blockade and heightened geopolitical tensions in the Middle East, particularly involving Iran.
Reasons Behind the Price Hike
The increase in CNG prices is directly linked to the rising cost of imported natural gas, which has been impacted by the blockade in the Strait of Hormuz. This strategic waterway is a critical transit point for global oil and gas supplies. The ongoing conflict in the region has disrupted supply chains, leading to a spike in energy prices worldwide.
Impact on Consumers
The price hike will affect thousands of CNG vehicle owners in the national capital, including auto-rickshaws, taxis, and private cars. Commuters are likely to face higher transportation costs, which may also lead to an increase in fares for public transport. The Delhi government has not yet announced any subsidy or relief measure to cushion the impact.
Comparison with Petrol and Diesel
Earlier this week, petrol and diesel prices were also raised by Rs 3 and Rs 2.5 per litre, respectively, due to similar global factors. The cumulative effect of these hikes is expected to put additional pressure on household budgets and the overall inflation rate.
Market Reaction
Oil marketing companies have cited the volatile international market as the primary reason for the price revision. Analysts predict that if the geopolitical situation does not improve, further price increases may be inevitable. The government is reportedly exploring alternative supply routes to mitigate the impact.
Consumers are advised to plan their fuel expenses accordingly and consider carpooling or using public transport to reduce costs.
