Indraprastha Gas Limited (IGL) on Tuesday announced another increase in Compressed Natural Gas (CNG) rates, marking the fourth hike within a span of less than two weeks. The latest revision saw CNG prices go up by Rs 2 per kilogram.
This increase follows a similar Rs 2 per kg hike on Saturday. Prior to that, rates had risen by Rs 2 per kg on May 15, followed by another Re 1 increase on May 17. The repeated rises in CNG prices come amid higher global energy prices linked to the ongoing Middle East conflict and disruptions around the Strait of Hormuz.
Petrol and Diesel Prices Also Surge
Oil marketing companies (OMCs) on Monday announced another increase in petrol and diesel prices, taking the cumulative rise to nearly Rs 7.5 per litre. Petrol prices were raised by Rs 2.61 per litre and diesel by Rs 2.71 per litre, marking the fourth fuel price increase in less than two weeks.
In the national capital, petrol prices climbed from Rs 99.51 per litre to Rs 102.12, while diesel rates rose from Rs 92.49 per litre to Rs 95.20, according to industry sources. The continued rise in fuel prices is expected to increase pressure on transportation costs and household budgets as consumers face higher expenses amid volatility in global energy markets.
Global Context and Impact
The Middle East conflict, which began on February 28 with US and Israel launching joint strikes on Iran, has continued to intensify. After the attack, Iran tightened its control over the strategically crucial Strait of Hormuz, a waterway that carries 20% of the world's fuel supplies, sending ripples across global energy markets.
These developments have led to sustained upward pressure on fuel prices worldwide, with India being no exception. The repeated adjustments in CNG, petrol, and diesel prices are likely to have a cascading effect on the economy, increasing costs for transportation, logistics, and ultimately consumers.
