India’s major city gas distributor, Indraprastha Gas Limited (IGL), has implemented a second price hike of Re 1 per kg for compressed natural gas (CNG) across its network within 48 hours. This increase has elevated the CNG price in Delhi to Rs 80.09 per kg, surpassing the Rs 80 mark for the first time. In Noida and Ghaziabad, CNG will now be priced at Rs 88.70 per kg.
The recent surge in CNG prices follows a previous hike of Rs 2 per kg on May 15 by IGL, bringing the rate in Delhi to Rs 79.09 per kg at that time. This latest increment has added to the financial burden on commuters, including private vehicle owners, cab operators, and public transport users reliant on CNG for their transportation needs.
The rise in CNG costs coincides with a broader escalation in retail fuel prices announced by the Centre on May 15. Petrol prices have surged by approximately Rs 3 per litre, reaching Rs 97.77 per litre in Delhi, while diesel prices have climbed to Rs 90.67 per litre.
The spike in fuel prices is occurring amidst heightened tensions in West Asia and the continued blockade of the Strait of Hormuz, a crucial energy trade route globally. With nearly one-fifth of the world’s oil and gas trade passing through this passage, supply disruptions have led to a significant increase in international crude oil prices.
Responding to concerns regarding the escalating fuel expenses, Kiren Rijiju emphasized that despite a substantial rise in global crude prices, India has managed to restrict the surge in petrol and diesel prices. While several nations experienced fuel price hikes ranging from 20% to nearly 100%, India saw only a 3.2% increase in petrol prices and a 3.4% increase in diesel prices. Rijiju highlighted that even as Brent crude surpassed $100 per barrel and global markets turned volatile, India’s public sector oil marketing companies absorbed considerable losses to shield consumers from more significant inflationary impacts.
