CNG prices were raised by ₹2 per kg in Delhi, marking the fourth increase in two weeks amid the ongoing global energy crisis.
Petrol and diesel prices have also risen sharply, with cumulative hikes nearing ₹7.5 per litre over the past fortnight.
Analysts warn that prolonged disruptions in the Strait of Hormuz and rising crude oil prices could lead to further fuel price hikes in India.
CNG Prices Up by ₹2 Again, Fourth Hike in Two Weeks Amid Energy Crisis
CNG prices have been hiked for the fourth time in two weeks as the prolonged West Asia conflict keeps global energy markets volatile, adding to inflation and fuel cost pressures in India
Summary
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Following the hike in petrol and diesel prices, rates of Compressed Natural Gas (CNG) were raised by ₹2 per kg in New Delhi on Tuesday. This marks the fourth increase in CNG prices in two weeks as the world grapples with an energy crisis triggered by the ongoing West Asia war.
The latest revision by Indraprastha Gas Limited (IGL) has pushed CNG prices in the national capital to ₹83.09 per kg, while rates rose to ₹91.70 per kg in Ghaziabad and Greater Noida. Prices in Gurugram increased to ₹88.12 per kg, while in Ajmer they climbed as high as ₹92.44 per kg.
On Monday, oil marketing companies revised petrol prices upward by ₹2.61 per litre and diesel prices by ₹2.71 per litre, cumulatively raising fuel prices by nearly ₹7.5 per litre over the last two weeks.
Prolonged West Asia Crisis
Since the onset of the war on February 28, global oil markets have remained extremely volatile.
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As India imports nearly 90% of its crude oil requirements, the country is particularly vulnerable to global market developments and geopolitical tensions.
The closure of the Strait of Hormuz by Iran following attacks by the US and Israel has sent global crude prices soaring, thereby weighing heavily on India’s import bill and the rupee.
According to reports citing energy analysts, the prolonged war — now in its third month — is likely to keep global energy prices elevated, with crude expected to remain above $100 per barrel if disruptions in the strait continue.
Oil marketing companies kept prices steady for several weeks despite the surge in global prices and absorbed the shocks.
However, state-run oil companies were reportedly making combined daily losses of nearly ₹1,000 crore, compelling them to raise retail fuel prices. Analysts and policymakers expect further price hikes unless Brent crude stabilises below $100 per barrel for a sustained period.
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Fresh Strikes Push Oil Prices Higher
Amid no signs of easing tensions in West Asia, oil prices rose again on Wednesday, with benchmark Brent crude futures gaining over 1% during early Asian trade. Brent futures climbed to $97.32 per barrel.
Although global investor sentiment remains mixed as talks between Tehran and Washington continue, US forces carried out strikes on Monday in southern Iran in what they described as “defensive actions.”