The Delhi government and state-run oil marketing companies raised CNG prices by ₹2 per kilogram on Tuesday [1, 2].
This price surge impacts thousands of commuters and commercial drivers in the National Capital Territory of Delhi who rely on compressed natural gas as a cheaper alternative to petrol and diesel.
The latest adjustment brings the current price of CNG in Delhi to ₹83.09 per kilogram [1]. This move marks the fourth price increase within a short window. Reports on the exact timeframe vary, with some sources citing four hikes in 11 days [1] and others stating the increases occurred over a 15-day period [3].
In total, the cost of CNG has risen by ₹6 per kilogram across these four adjustments [1]. The government said the price hikes were due to the volatility of global crude-oil prices [4].
While costs for consumers are rising, state-run oil marketing companies have seen significant financial gains. Reports indicate a profit jump of over ₹77 crore [5]. This disparity has led to questions regarding the necessity of frequent price hikes while corporate profits remain high [5].
These fluctuations in fuel pricing are particularly acute in North India, where CNG is a primary fuel source for public transport and auto-rickshaws. The rapid succession of increases, occurring in less than two weeks, places immediate financial pressure on low-income transport operators [1, 3].
“CNG price was raised by ₹2 per kilogram to ₹83.09 per kg”
The rapid succession of price hikes suggests a high sensitivity to global crude oil volatility and a strategy by state-run companies to maintain high margins. For Delhi's transport infrastructure, these increases may lead to higher fares for public transit and increased operational costs for commercial drivers, potentially offsetting the economic benefits of using CNG over traditional liquid fuels.
