Compressed Natural Gas (CNG) has become dearer by ₹1 per kg in Madhya Pradesh, with the new price in Bhopal reaching ₹94.75 per kg. This marks the second increase in just 10 days, reflecting continued pressure on alternative fuel prices amid global uncertainties, including the ongoing Iran conflict.

The revision was implemented by Think Gas Agency, which supplies CNG to Bhopal and surrounding districts. The fresh hike comes barely two weeks after a sharper increase of nearly ₹3 per kg on May 16.

Second Rise in 10 Days

On Monday, consumers in the state capital noticed the revised rates at pumps. According to officials, the adjustment reflects rising input costs. Two months ago, CNG prices were lower by around ₹6 per kg compared to current levels, with three upward revisions in this period.

Think Gas operates around 25 CNG stations in Bhopal, including prominent locations on Hoshangabad Road, Bairagarh Road, and near Kolhar. The agency also caters to Sehore, Rajgarh, Shivpuri, and Vidisha districts. Other players like GAIL and Avantika Gas handle supplies in Indore, Ujjain, Gwalior, and additional regions.

Impact on CNG Users

The repeated price hikes are being felt by thousands of auto drivers, cab operators, and private vehicle owners who switched to CNG for its cleaner emissions and perceived cost advantage. However, with petrol and diesel also seeing multiple increases this month, the relief from CNG appears to be shrinking.

CNG Vehicle Sales Surge Despite Rising Costs

Interestingly, demand for CNG-based vehicles in Bhopal has grown significantly. Over the last three years, sales have jumped by nearly 50 percent. Showrooms report 10 to 15 CNG-fitted cars and two-wheelers being sold daily. Many buyers cite better mileage compared to petrol and diesel as the main reason, even as fuel prices climb.

Understanding CNG

CNG, or Compressed Natural Gas, is primarily composed of methane. It is extracted from underground oil and gas reserves, processed to remove impurities, and then compressed at high pressure for use as vehicle fuel. Environmentalists often highlight its lower pollution levels compared to conventional fuels.

Petrol-Diesel Prices Also Up Sharply

The CNG increase comes close on the heels of aggressive hikes in petrol and diesel rates. Oil companies raised prices four times in 11 days, with the latest revision on May 25 pushing diesel above ₹100 per litre in several districts.

In Bhopal, petrol now costs ₹114.65 per litre and diesel ₹99.74 per litre. Ujjain remains the costliest among major cities, followed by Indore, Jabalpur, and Gwalior. The recent increases were recorded as:

- May 15: ~₹3 per litre

- May 19: ~₹0.90 per litre

- May 23: ₹0.87–0.91 per litre

- May 25: ~₹2.61–2.71 per litre (with state-level variation up to ₹3)

Public Reaction and Concerns

Many commuters expressed disappointment over the back-to-back revisions. A local autorickshaw driver at MP Nagar said the frequent hikes were affecting daily earnings. “We shifted to CNG thinking it would save money, but now everything is going up,” he added.

Transport operators fear further pressure on fares in the coming days. City buses and school vans, many running on CNG, may also see adjustments.

What Lies Ahead

Industry watchers expect prices to remain volatile given international developments. With summer demand and global supply concerns persisting, more revisions cannot be ruled out. State authorities have not issued any immediate statement on possible relief measures or subsidies for CNG users.

Meanwhile, consumers are advised to check real-time rates at pumps as different stations may display slight variations during the transition.

The latest CNG price hike in Madhya Pradesh, particularly in Bhopal, adds to the growing burden on middle-class households and small transporters already grappling with rising living costs. How long this trend continues will depend on global crude oil dynamics and domestic policy responses.

Fuel Prices Hiked Third Time in 10 Days Across India

State-owned oil marketing companies announced another round of fuel price increases on Saturday, marking the third revision in less than ten days. Petrol prices rose by 87 paise per litre and diesel by 91 paise per litre in the national capital.

Following the revision, petrol now costs ₹99.51 per litre in Delhi, up from ₹98.64. Diesel is priced at ₹92.49 per litre, compared to ₹91.58 earlier. Compressed Natural Gas (CNG) prices were also increased by ₹1 per kg, taking the rate to ₹81.09 per kg in Delhi.

Sharpest Impact in Rajasthan

In Jaipur, the hike was marginally higher. Petrol became costlier by 93 paise, reaching ₹109.84 per litre, while diesel increased by 92 paise to ₹95.06 per litre. This marks the third consecutive fuel price adjustment in Rajasthan within nine days.

The latest increases come as international crude oil prices continue to remain elevated due to the ongoing conflict in West Asia. Sources in the petroleum sector said oil companies have begun passing on the higher costs in a calibrated manner after absorbing losses for several weeks.

Timeline of Recent Increases

Since May 15, fuel rates have climbed steadily. The first hike of ₹3 per litre was followed by a 90 paise increase on May 19. With Saturday’s revision, the cumulative rise in petrol and diesel prices has touched nearly ₹5 per litre in just over a week.

Industry observers noted that before the West Asia tensions escalated, crude oil was hovering around $70 per barrel. Prices have since crossed $100 per barrel, putting significant pressure on Indian oil companies.

Losses Prompted Action

According to government officials, public sector oil companies including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum were incurring monthly losses of around ₹30,000 crore on petrol, diesel, and LPG sales. The companies had been absorbing the impact for some time before initiating daily price revisions.

The Centre had earlier reduced special excise duty on petrol and diesel by ₹10 per litre each to cushion consumers. Despite this relief, rising global prices have made further adjustments necessary.

Ripple Effect on Everyday Costs

The repeated fuel price hikes are expected to have a cascading impact on multiple sectors. Transportation and freight costs are likely to rise, which could make vegetables, fruits, and other essential commodities more expensive, especially those transported from distant states.

Farmers may also face higher input costs as running tractors, pump sets, and other diesel-powered equipment becomes costlier. Public transport operators have indicated that bus and auto fares, including school bus charges, could see upward revisions in the coming days.

How Fuel Prices Are Determined

Fuel pricing in India follows a dynamic daily revision system, with rates updated at 6 AM every day. The final consumer price includes several components: international crude oil cost, refining expenses, central excise duty, dealer commission, and state-level Value Added Tax (VAT).

Since states levy different VAT rates, fuel prices vary significantly across cities. Delhi generally has lower rates compared to many other states due to lower local taxes.

Outlook Remains Uncertain

Petroleum Ministry officials have maintained that prices are being adjusted gradually to avoid sudden shocks to consumers. However, if crude oil prices remain above $100 per barrel for an extended period, further increases cannot be ruled out.

Consumers in major cities are already feeling the pinch, with many expressing concern over the timing of these hikes amid rising living costs. Market experts suggest that any de-escalation in West Asia tensions could help stabilise global crude prices and bring some relief at the pump.