Delhi commuters woke up to another fuel price shock on Tuesday after Compressed Natural Gas (CNG) became costlier by ₹2 per kg in the national capital, marking the fourth increase in less than 15 days.
The latest hike comes at a time when petrol and diesel prices have also been rising steadily across the country, pushing up transport costs and adding pressure on household budgets. With buses, taxis and auto-rickshaws in cities such as Delhi and Mumbai heavily dependent on CNG, the increase is expected to directly impact daily commuters.
The revision follows a Re 1 increase in CNG prices announced just days ago on Saturday. The repeated hikes have triggered concerns over rising commuting expenses and the possibility of higher logistics costs feeding into inflation in the coming weeks.
Petrol and diesel prices were revised upwards again on Monday, making it the fourth fuel price increase in under two weeks. In Delhi, petrol prices climbed by ₹2.61 to ₹102.12 per litre, crossing the ₹100 mark once again, while diesel rose by ₹2.71 to ₹95.20 per litre.
Other metro cities also saw fresh increases.
In Kolkata, petrol now costs ₹113.51 per litre after a hike of ₹2.87, while diesel rose by ₹2.80 to ₹99.82 per litre. Mumbai recorded petrol prices at ₹111.21 per litre following a ₹2.72 increase, while diesel touched ₹97.83 per litre after going up by ₹2.81. In Chennai, petrol prices increased by ₹2.46 to ₹107.77 per litre, while diesel rose by ₹2.57 to ₹99.55 per litre.
Why fuel prices are rising again
The latest round of increases follows three successive hikes earlier this month. On May 15, petrol and diesel prices were raised by ₹3 per litre each. Another increase came on May 19, when prices went up by 90 paise per litre. On May 23, petrol prices rose by 87 paise while diesel saw a 91-paise increase.
Fuel prices in India are linked to global crude oil and natural gas rates, currency fluctuations and local taxes. The ongoing geopolitical tensions in West Asia have kept international energy markets volatile, leading to sustained pressure on fuel prices.
Impact likely on transport and household budgets
Industry observers say the back-to-back increase in CNG, petrol and diesel rates could raise transport and logistics costs, eventually affecting prices of essential goods transported by road.
For consumers, the impact is likely to be immediate in the form of higher daily commuting expenses, especially for those dependent on CNG-powered public transport and private vehicles.
Meanwhile, the Centre has maintained that it has already reduced the tax burden on consumers. According to Petroleum Ministry Joint Secretary Sujata Sharma, the government gave up nearly ₹14,000 crore in tax revenue after cutting excise duty on petrol and diesel on March 27. The duty reduction of ₹10 per litre each had come amid a sharp spike in global crude oil prices linked to tensions in West Asia.