Compressed Natural Gas prices were raised by Re 1 per kg in the Delhi-NCR region on Saturday, marking the second hike this week as rising global crude oil prices continue to pressure fuel retailers.
With the latest revision, CNG in Delhi now costs Rs 80.09 per kg, while rates in Noida, Greater Noida and Ghaziabad have risen to Rs 88.70 per kg.
The increase comes just two days after CNG prices were raised by Rs 2 per kg on May 15, taking the cumulative hike over 48 hours to Rs 3 per kg.
The earlier revision had coincided with a nationwide increase in petrol and diesel prices. On May 15, state-run oil marketing companies raised petrol and diesel prices by Rs 3 per litre for the first time in more than four years, citing soaring global crude oil prices amid the ongoing US-Iran conflict.
Following the revision, petrol in Delhi now costs Rs 97.77 per litre while diesel is priced at Rs 90.67 per litre.
Hormuz disruption driving fuel price surge
CNG prices were also increased earlier this week in Mumbai, where the fuel now costs Rs 84 per kg. However, domestic LPG cylinder prices and piped natural gas rates for households remain unchanged for now.
Global crude prices have surged by over 50 per cent since US-Israeli strikes on Iran on February 28 and subsequent disruptions to shipping through the Strait of Hormuz, a key global energy route.
Despite the sharp rise in international oil prices, retail fuel rates in India had remained frozen for weeks, with opposition parties accusing the Centre of delaying revisions until after Assembly elections in key states.
The latest increases came soon after the elections concluded, with the Bharatiya Janata Party winning three of the five states that went to polls, including West Bengal.
Petrol, diesel at highest levels since 2022
Fuel prices have now reached their highest levels since May 2022. Rates had largely remained unchanged since April 2022 except for a Rs 2 per litre cut announced in March 2024 ahead of the Lok Sabha elections.
In Mumbai, petrol now costs Rs 106.68 per litre and diesel Rs 93.14. In Kolkata, petrol is priced at Rs 108.74 and diesel at Rs 95.13, while in Chennai, petrol costs Rs 103.67 and diesel Rs 95.25 per litre.
Industry sources said the latest hikes remain modest compared to the jump in crude prices, with oil marketing companies still absorbing substantial losses. Estimates suggest retailers continue to lose around Rs 11 per litre on petrol and Rs 39 per litre on diesel despite the revisions.
Private retailers had already raised prices earlier. Nayara Energy increased petrol prices by Rs 5 per litre and diesel by Rs 3 in March, while Shell plc raised petrol prices by Rs 7.41 and diesel by Rs 25 per litre from April 1.
Meanwhile, Prime Minister Narendra Modi recently urged citizens to reduce unnecessary travel, adopt work-from-home practices where possible and conserve fuel as high energy prices threaten to widen India’s current account deficit and strain foreign exchange reserves.
Analysts warned that sustained increases in petrol, diesel and CNG prices could add to inflationary pressures and weaken consumer demand in the coming months.
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