Consumers faced another hike in fuel costs on Tuesday (May 26) as compressed natural gas (CNG) prices were increased by Rs 2 per kg, marking the fourth revision in less than two weeks amid surging global energy prices and geopolitical tensions in West Asia.
With effect from 6 am on May 26, CNG in Delhi now costs Rs 83.09 per kg. The latest increase comes just two days after prices were raised by Re 1 per kg on Sunday (May 24).
This is the third CNG price hike in the last nine days and the fourth within 11 days. Earlier, rates in Delhi-NCR were increased by Re 1 per kg on Friday following a Rs 2 per kg hike on May 15. Since then, CNG prices in the national capital have risen cumulatively by Rs 7 per kg.
However, there has been no change in the prices of piped natural gas (PNG) supplied to households or domestic LPG cylinders so far.
Global crude prices drive hikes
Industry sources attributed the latest revision to rising international crude oil prices and fears of supply disruptions through the Strait of Hormuz, a crucial global oil transit route, amid the ongoing US-Iran conflict.
Brent crude prices have climbed to around USD 86 per barrel from nearly USD 72 before the Middle East conflict intensified in late February.
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The fresh CNG hike follows another increase in petrol and diesel prices across the country on Saturday — the third such revision this month. According to a PTI report, petrol prices rose by 87 paise per litre while diesel prices increased by 91 paise per litre.
In Delhi, petrol now costs Rs 99.51 per litre, up from Rs 98.64, while diesel prices have increased from Rs 91.58 to Rs 92.49 per litre.
Inflation concerns grow
Government officials defended the fuel price revisions, saying they were necessary to offset rising crude import costs and ensure uninterrupted fuel supplies during continued geopolitical uncertainty.
India imports nearly 85 per cent of its crude oil requirements, making domestic fuel prices highly vulnerable to global market movements.
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Analysts warned that repeated hikes in CNG, petrol, and diesel prices could increase transportation and logistics costs, potentially leading to higher prices of food items and essential commodities, thereby adding to inflationary pressure across sectors.
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