Compressed Natural Gas prices climbed once again across Delhi and several cities in North India on Tuesday, deepening concerns over rising transport and fuel expenses for daily commuters and commercial vehicle operators.
The latest revision saw CNG prices increase by ₹2 per kilogram in the national capital and neighbouring regions, marking the fourth upward revision since May 15. With this hike, CNG in Delhi is now retailing at ₹83.09 per kg.
The repeated increases come at a time when global energy markets remain volatile because of tensions in West Asia, which have significantly impacted imported gas prices.
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Four hikes in less than two weeks
According to The Hindu, since the first revision earlier this month, CNG prices in Delhi, Uttar Pradesh, Haryana, and Rajasthan have cumulatively risen by ₹6 per kg. The first increase of ₹2 per kg came into effect on May 15, followed by smaller hikes on May 17 and May 23 before Tuesday’s latest revision.
The revised rates now place CNG prices in Noida and Ghaziabad at ₹91.70 per kg, while consumers in Meerut are paying ₹91.58 per kg. In Kanpur, rates have touched ₹94.42 per kg.
In Haryana, Gurugram residents are now paying ₹88.12 per kg, while prices in Rewari stand at ₹87.70 per kg. Rajasthan cities such as Ajmer and Pali have also witnessed fresh increases.
The price revisions are being implemented primarily by Indraprastha Gas Limited and other city gas distributors across the region.
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Imported gas costs putting pressure on distributors
According to The Hindu, industry analysts say city gas companies are struggling to absorb rising input costs as imported liquefied natural gas becomes more expensive.
According to Prashant Vashisht of ICRA, contribution margins for city gas distributors have narrowed sharply due to the increased share of imported LNG in their procurement mix.
He noted that the recent cumulative hike is still insufficient to offset the pressure distributors are facing. Another challenge stems from the fact that imported gas purchases are denominated in US dollars. As the rupee weakens against the dollar, procurement costs automatically rise even if global LNG prices remain stable.
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More price increases may follow
According to The Hindu, the continuing volatility in global energy markets has raised concerns that additional price hikes may be unavoidable in the coming weeks.
CNG has traditionally remained a relatively affordable alternative to petrol and diesel for public transport, taxis and commercial fleets. However, the steady increase in rates is beginning to narrow that cost advantage, potentially affecting household budgets and transportation costs across urban centres in North India.
