Fuel price surge worsens: CNG gets costlier after petrol and diesel hike

Mumbai: Compressed Natural Gas (CNG) prices have been increased by ₹2 per kilogram in Delhi and Mumbai amid rising pressure on global energy markets linked to tensions in West Asia and concerns surrounding the Strait of Hormuz.

The latest revision comes just after petrol and diesel prices were increased by ₹3 per litre across India, marking a broader rise in fuel costs after months of relative stability.

New CNG rates in Delhi and Mumbai

In Delhi, the revised CNG price now stands at ₹79.09 per kg, up from ₹77.09 per kg. In the Mumbai Metropolitan Region, gas supplier Mahanagar Gas Limited (MGL) also announced a ₹2 per kg increase, taking CNG prices to ₹84 per kg in and around the city.

The increase is expected to directly affect public transportation systems, including buses, taxis and autorickshaws, many of which operate primarily on CNG.

Officials and industry experts linked the hike to ongoing disruptions in global energy markets caused by the Iran conflict and fears surrounding the Strait of Hormuz, one of the world’s most critical oil and gas transit routes.

Rising international crude oil prices, supply concerns, and currency fluctuations have increased import costs, putting pressure on domestic fuel pricing mechanisms.

Oil companies had reportedly absorbed part of the cost burden for several weeks before revising prices.

Mumbai auto unions demand fare revision

Following the CNG price hike, autorickshaw unions in Mumbai have demanded an increase in fares. Union representatives are seeking a ₹1 increase in the minimum fare, which currently stands at ₹26.

Transport operators argue that repeated increases in fuel costs are making operations financially difficult, particularly for drivers dependent on daily passenger income.

The CNG hike follows the recent increase in petrol and diesel prices by ₹3 per litre across the country. In Delhi, petrol prices rose from ₹94.77 to ₹97.77 per litre, while diesel prices increased to ₹90.67 per litre.

In several major cities including Mumbai, Kolkata and Chennai, fuel prices have crossed the ₹100 per litre mark after the revision.

The increase ended a long freeze on fuel pricing that had largely remained in place since April 2022, except for a small reduction before the 2024 Lok Sabha elections.

The latest fuel price increases are expected to affect transportation costs, logistics operations and household expenses. Economists warn that rising fuel prices often trigger broader inflationary pressure, impacting essential commodities and public transport fares.

Daily commuters and middle-class households are expected to feel the immediate impact, particularly in metro cities heavily dependent on fuel-based transportation.

Oil companies say pressure had become unsustainable

Industry sources indicated that state-run oil companies had delayed fuel price revisions for nearly three months despite rising international energy prices. However, continued losses reportedly made it difficult to sustain operations without increasing retail rates.

Officials described the current hike as only a partial adjustment rather than a complete pass-through of global energy costs.

Analysts say fuel markets are likely to remain volatile as geopolitical tensions continue in West Asia. Future price movements are expected to depend on crude oil trends, global supply conditions, and developments surrounding the Strait of Hormuz.

For now, consumers and transport operators remain concerned that additional increases could follow if international energy markets continue to remain unstable.