CNG Price Hike: Delhi Rates Cross 80 Mark After Second Increase In 48 Hours

The common man faces another financial blow as CNG prices have been hiked for the second time in just two days. According to reports, Indraprastha Gas Limited (IGL) has increased the price of Compressed Natural Gas (CNG) by 1 rupee per kilogram in the national capital, Delhi, and surrounding NCR cities. This follows a significant hike of 2 rupees per kilogram implemented on May 15. Consequently, the price of CNG in Delhi has crossed the 80 rupee mark for the first time, while in Noida, prices are nearing the 89 rupee level. Experts believe that in the coming days, this could lead to a visible increase in the fares of auto-rickshaws and CNG-based taxis, further impacting the monthly budget of daily commuters.

Frequent Price Revisions by IGL

Within a span of 48 hours, IGL has revised rates twice. 09 rupees per kg. 70 rupees per kg. Over the last three days, the cumulative increase in Delhi has reached 3 rupees per kg. This rapid succession of price hikes has caused concern among transport unions and private vehicle owners alike. The sudden surge is being attributed to the volatile energy market and the rising procurement costs for gas distribution companies.

Impact on Transportation and Global Factors

Experts suggest that this surge will likely lead to higher fares for auto-rickshaws and CNG-based taxis. The primary driver behind this domestic hike is the rising cost of natural gas in the international market. As global supply chains remain under pressure, the cost of importing natural gas has risen Notably, forcing domestic suppliers to pass on the burden to consumers. The transport sector, which had shifted towards CNG as a cleaner and cheaper alternative to petrol and diesel, is now feeling the heat of these rising costs.

Broader Fuel Price Trends

On May 15, petrol and diesel prices also saw a sharp increase of 3 rupees per liter. 67 rupees per liter. These hikes are linked to the ongoing Iran war, which has caused crude oil prices to surge by over 50 percent. Crude oil has remained above 100 dollars per barrel for the past 23 trading days. Also, the Indian Rupee has depreciated by more than 5 percent against the US Dollar since the conflict began, further intensifying inflationary pressures. The combination of a weak currency and high global energy prices is creating a challenging economic environment for the country.