CNG Prices Hike By 1 Rupee In Delhi NCR Crossing 80 Mark

The residents of the national capital and surrounding regions are facing another financial blow as Compressed Natural Gas (CNG) prices have been hiked once again. According to the latest information, the price of CNG in Delhi has been increased by 1 rupee per kilogram. This sudden surge is expected to directly impact the daily budgets of thousands of commuters, including office-goers who rely on public transport, as well as auto-rickshaw, taxi, and app-based cab drivers such as those operating for Ola and Uber. The increase comes at a time when inflation is already a major concern for the common man.

Second Price Hike Within 48 Hours

Indraprastha Gas Limited (IGL) has implemented this price hike for the second time in just 48 hours. This back-to-back increase has caused significant distress among consumers in the Delhi-NCR region, while 09 per kg. 70 per kg. Experts suggest that this trend might lead to a subsequent rise in the fares of auto-rickshaws and CNG-based taxis in the coming days as drivers struggle to cope with rising operational costs.

Cumulative Impact Over Three Days

The recent price trajectory shows a steep climb, while just a few days ago, on May 15, CNG prices were hiked by 2 rupees per kilogram. When combined with the latest 1 rupee increase, the total hike in Delhi has reached 3 rupees per kilogram within a span of just three days. Market analysts attribute this frequent revision to the rising costs of natural gas in the international market. As global supply chains face pressure and procurement costs for energy companies rise, the burden is being passed on to the end consumers. There are concerns that if international prices don't stabilize, further hikes could be on the horizon.

Broader Energy Crisis and Global Factors

The hike in CNG prices isn't an isolated event but part of a broader trend in the energy sector. On May 15, petroleum companies also increased the prices of petrol and diesel by 3 rupees per liter. 67 per liter. The primary driver behind these domestic price fluctuations is the ongoing geopolitical tension, specifically the Iran war, while since the conflict began, global crude oil prices have surged by more than 50 percent. For the past 23 trading days, crude oil has consistently remained above the 100 dollar per barrel mark. On top of that, the Indian Rupee has faced significant depreciation against the US Dollar, falling by more than 5 percent since the start of the war, which has further intensified the inflationary pressure on imported fuel and gas.