Fourth hike this month pushes up CNG rates by ₹6 so far

Compressed natural gas prices were hiked by ₹2 per kilogram on Tuesday, marking the fourth increase in the last two weeks. Indraprastha Gas Limited revised the rates across Delhi-NCR, pushing CNG in the national capital to ₹83.09 per kg.

The latest revision comes a day after oil companies raised petrol and diesel prices for the fourth time this month. Petrol now costs ₹102.12 per litre in Delhi, while diesel is at ₹95.20.

For commuters in Noida, Ghaziabad and Greater Noida, CNG will now cost ₹91.70 per kg. Gurugram residents will pay ₹88.12 per kg.

Why prices are rising

The sustained price revision is being driven by volatility in global crude oil markets. Sources indicate crude prices have climbed from around $70 per barrel before the Iran-US conflict to over $100 per barrel now.

State-owned oil marketing companies have been absorbing significant losses in recent weeks. According to Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, companies were losing approximately ₹1,000 crore daily on selling petrol, diesel and domestic cooking gas before the price revision cycle began on May 15.

That figure has since reduced to about ₹600 crore per day following the staggered hikes, officials said.

Ripple effect on household budgets

The cascading impact of rising fuel prices is already visible across sectors. Transporters are expected to revise freight charges, which will directly affect prices of vegetables, fruits and other essentials coming from other states.

Farming communities are also feeling the pressure. Higher diesel prices mean increased operational costs for tractors and irrigation pumps, potentially pushing up grain prices in the coming months.

Commuters may need to prepare for higher bus and auto-rickshaw fares as operators pass on the increased CNG cost. School bus services in Delhi-NCR are also likely to revise their monthly fees.

CNG vehicle sales defying price trend

Interestingly, the repeated price hikes have not dampened demand for CNG-powered vehicles. Dealers in Bhopal report a 50 per cent increase in CNG vehicle sales over the last three years, with showrooms selling 10 to 15 such units daily.

Industry observers attribute this to the fuel's still-lower cost compared to petrol and diesel, along with better mileage. Whether this trend holds if prices continue rising remains to be seen.

Officials have indicated that further revisions cannot be ruled out if crude oil remains elevated for a prolonged period.