CNG Prices Soar Again: IGL Implements Fourth Hike in NCR
CNG rates in Delhi-NCR see another increase, impacting commuters.
Top Summary
- What happened: Indraprastha Gas Limited (IGL) increased CNG prices by ₹2 per kg in Delhi-NCR.
- Why it matters: This marks the fourth CNG price hike in less than two weeks, impacting transportation costs.
- What changes for people: Commuters using CNG vehicles, including buses and cabs, will face higher fuel expenses.
- Who is affected: CNG vehicle owners and commuters in Delhi and Mumbai are most affected, along with goods moved by road.
CNG Price Hike Details
Indraprastha Gas Limited (IGL) announced a ₹2 per kg increase in CNG prices in Delhi-NCR on Tuesday.
This is the fourth increase in CNG prices in less than 15 days. This follows a ₹1 increase announced on Saturday.
Fuel Price Increases Across India
Oil marketing companies also revised petrol and diesel prices upward for the fourth time in under two weeks on Monday.
In Delhi, petrol prices climbed by ₹2.61 per litre to ₹102.12, while diesel rose by ₹2.71 to ₹95.20 per litre.
Kolkata saw petrol prices rise by ₹2.87 to ₹113.51 per litre and diesel increase by ₹2.80 to ₹99.82 per litre.
Mumbai's petrol price increased by ₹2.72 to ₹111.21 per litre, with diesel at ₹97.83 per litre after a ₹2.81 increase.
Chennai's petrol rates rose by ₹2.46 to ₹107.77 per litre, and diesel prices increased by ₹2.57 to ₹99.55 per litre.
Factors Influencing Price Hikes
Fuel prices are linked to international crude oil and gas prices, currency exchange rates and domestic levies.
Ongoing tensions in the Middle East and concerns over supplies have pushed crude prices higher, reaching $100 per barrel, from $70 before the conflict.
"The successive hikes in transport fuels are expected to increase logistics and transportation expenses, which could also affect the prices of goods moved by road. Consumers may also see a rise in daily commuting costs."
Government Measures
The Centre absorbed a revenue impact of nearly ₹14,000 crore after reducing excise duty on petrol and diesel, according to Sujata Sharma, joint secretary in the petroleum ministry.
The excise duty reduction of ₹10 per litre on petrol and diesel was announced on March 27 following a sharp increase in global crude oil prices.
Previous Price Revisions This Month
- Fuel prices were first raised by ₹3 per litre each on May 15.
- Another hike of 90 paise per litre followed on May 19.
- On May 23, petrol prices increased by 87 paise per litre and diesel by 91 paise per litre.
What to Watch Next
Monitor international crude oil prices and geopolitical developments in the Middle East, as these factors will likely influence future fuel price adjustments. Keep an eye on any further government interventions regarding excise duties to mitigate the impact on consumers.