CNG price hike: Delhi sees third revision in 10 days, fuel rates climb to ₹81/kg

CNG price hike: Delhi witnessed third revision in Compressed Natural Gas (CNG) rates in the last 10 days. After latest upward revision, fuel rates climbed to ₹81.09 from ₹80.09 per kg. In the NCR region, including Noida and Ghaziabad, the price will be ₹89.70 per kg. On May 15, the government increased CNG prices by ₹2 and then again by Re 1 on May 18.

Commercial drivers already grappling with rising operational costs, will now have to bear the burden of fresh prices after state-owned oil companies made the latest upward revision in CNG rates. The announcement about CNG price change comes amid ongoing strike against the hike in fuel and CNG prices for commercial vehicles.

The 'Chaalak Shakti Union', in coordination with other organisations of Delhi including the All India Motor Transport Congress (AIMTC), had launched 72-hour Chakka Jam (strike) on 21 May. The demonstrations entered their third day on Saturday, representing the woes of truck operators, private bus owners, cab drivers, and maxi-cab drivers in the region.

AIMTC addressed a letter to Delhi Lieutenant Governor Taranjit Singh Sandhu and Chief Minister Rekha Gupta seeking recall of fuel surcharge and upward revision of taxi fares. The letter said, “Due to the continuously increasing prices of CNG, petrol and diesel, middle-class drivers are struggling to support their families."

It added, “The unions have demanded that the Delhi government increase auto and taxi fares. The rise in CNG prices has burdened drivers financially. The government has failed to address other demands, leading to exploitation of drivers.”

Besides fare revision, the drivers' association has put forward the demand a formal meeting with the government to discuss policy measures aimed at protecting the interests of commercial vehicle drivers and regulating app-based transport services.

Over the fuel rates, the union said, “Fares for city taxis have not been hiked in the Delhi-NCR region for the last 15 years. Meanwhile, the cost of CNG, petrol, diesel, et cetera, has increased manifold."

Petrol, Diesel price hike on 23 May

This protest coincides with a fresh increase in CNG prices in Delhi alongside fresh hikes in petrol and diesel prices across major metropolitan cities. After the latest revision, petrol and diesel have got dearer in all four metros, including Delhi, Mumbai, Kolkata and Chennai. In Delhi, petrol price is now close to ₹100 per litre as it was increased by 87 paise to ₹99.51 per litre from ₹98.64. In the national capital, diesel price is up 91 paise to ₹92.49 per litre from ₹91.58.

Since, India imports more than half of the natural gas to meet its domestic demand, the West Asia war has impacted its energy supply considerably. Many countries of the world grapple with fuel crisis due to the blockade of Strait of Hormuz, an important trade route that is located in the Gulf Strait which controls on-fifth of global energy exports. The government has started passing on the elevated energy pricing to customers in a calibrated manner.

Analysts warn of more hikes ahead

Bank of Baroda Chief Economist Madan Sabnavis earlier told Livemint, that “given the losses being incurred by oil marketing companies (OMCs), rise in petrol and diesel prices was inevitable.” According to him, more price hikes could follow, as the current increase may not be enough to fully compensate OMCs for their losses.