In a fresh blow to consumers, the prices of compressed natural gas (CNG) were hiked by Rs 1 per kilogram effective from today. This increase comes as part of the regular revision in fuel prices, impacting millions of vehicle owners who rely on CNG as a cleaner and cheaper alternative to petrol and diesel.
CNG Price Revision
The state-owned gas utility companies revised the CNG prices across various cities. In Delhi, the price of CNG now stands at Rs 75.61 per kg, up from the previous rate. Similarly, in Mumbai, the price has been increased to Rs 76 per kg. The hike is attributed to the rise in the cost of natural gas, which is the primary raw material for CNG production.
Impact on Consumers
The increase in CNG prices is expected to raise the operational costs for public transport vehicles such as buses, taxis, and auto-rickshaws, which are major users of CNG. Commuters may face higher fares as operators pass on the additional burden. The hike also affects private vehicle owners who have converted their cars to CNG to save on fuel costs.
Petrol and Diesel Prices Surge
Alongside the CNG price revision, petrol and diesel prices also witnessed a fresh increase across metro cities. In Delhi, petrol prices rose by 30 paise per liter to Rs 96.72, while diesel increased by 35 paise to Rs 87.62 per liter. In Mumbai, petrol now costs Rs 106.31 per liter, up by 29 paise, and diesel is priced at Rs 94.27 per liter, an increase of 33 paise.
Reasons for Price Hikes
The increase in petrol and diesel prices is linked to the volatility in global crude oil prices and the depreciation of the Indian rupee against the US dollar. India imports over 80% of its crude oil requirements, making domestic fuel prices sensitive to international market trends. The recent surge in global crude prices, coupled with a weaker rupee, has forced oil marketing companies to revise prices upward.
Market Reactions
The consecutive price hikes have raised concerns among consumers and industry experts. The Federation of Indian Petroleum Dealers has stated that the increases are necessary to align with international rates but acknowledged the burden on the common man. Meanwhile, the government has not announced any immediate relief measures, though it continues to monitor the situation.
City-Wise Breakdown
- Delhi: Petrol Rs 96.72/litre (up 30 paise), Diesel Rs 87.62/litre (up 35 paise), CNG Rs 75.61/kg
- Mumbai: Petrol Rs 106.31/litre (up 29 paise), Diesel Rs 94.27/litre (up 33 paise), CNG Rs 76.00/kg
- Chennai: Petrol Rs 102.84/litre (up 28 paise), Diesel Rs 94.39/litre (up 32 paise)
- Kolkata: Petrol Rs 104.67/litre (up 27 paise), Diesel Rs 91.76/litre (up 30 paise)
Outlook
Analysts predict that fuel prices may remain elevated in the near term due to ongoing geopolitical tensions and supply constraints. The government's decision to reduce excise duty on petrol and diesel earlier this year provided some relief, but the recent hikes have eroded those gains. Consumers are advised to plan their fuel purchases accordingly and consider alternative modes of transport where possible.
