CNG Prices Hiked By Re 1 In Delhi, Third Such Hike In 10 Days

Compressed Natural Gas (CNG) prices in Delhi-NCR have been increased by Re 1 per kg, marking the third increase in 10 days. After the latest revision, CNG will cost Rs 81.09 per kg in Delhi. In Noida and Ghaziabad, the price will be Rs 89.70 per kg. The government had raised CNG prices by Rs 2 on May 15 and then again by Re 1 on May 18. 

This is the third increase in rates since May 15, when state-owned oil companies started passing on the burden of the elevated cost of energy amid the ongoing Middle East crisis.

Revised Rates Of CNG In Major Cities

Delhi: Rs 81.09 per Kg
Noida: Rs 89.70 per Kg
Ghaziabad: Rs 89.70 per Kg
Gurugram: Rs 86.12 per Kg
Greater Noida: Rs 89.70 per Kg
Ajmer: Rs 90.44 per Kg

Impact Of CNG Price Hike

The CNG price hike impacts public transportation, feeding into retail inflation.

With a large section of public transports now running on CNG, it is expected that the increased cost would be passed on to the commuters.

The closure of the Strait of Hormuz, which handles one-fifth of the world's oil flows, has impacted supplies across the world. This has made domestic prices unsustainable, with customers bearing the brunt of the increased costs.

Losses Mount For OMCs

The retail fuel price hikes follow mounting losses for oil marketing companies in India.

The state-run oil companies, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), have been bearing losses of about Rs 1,600 crore daily, having to buy crude oil at higher prices but not being able to pass it off to customers

The OMCs had also sought relief, but reports suggest, the government had refrained for a major price hike thus far to keep inflation under control.

In a public appeal last week, Prime Minister Narendra Modi urged citizens to save fuel and work remotely - a move that would help limit the crude demand and lower India's foreign outflows.