As consumers were coming to terms with the surge in petrol and diesel prices, compressed natural gas (CNG) prices too had gone up. The authorities have hiked the price of CNG in Delhi by ₹2 per kg. The new price in the capital is ₹79.09 per kg as compared to the earlier ₹77.09 per kg. Fears of a disruption to global fuel supplies as the conflict with Iran escalates are being blamed for the increase. Concern that increased tension over the Strait of Hormuz would diminish global energy supplies.
The hike comes on the lines of what was witnessed in the Mumbai Metropolitan Region (MMR), where Mahanagar Gas Limited (MGL) had hiked CNG prices by ₹2 per kg. The new rate now Rs 84/kg in Mumbai & surrounding areas
Also Read: CNG Prices Hiked In Mumbai To ₹84/kg — Will Rising Fuel Costs Push Auto, Taxi Fares Higher?
The timing of the hike is very critical as the country is already facing the strain of the rise in global crude oil prices. The West Asian conflict is creating a volatile crude price environment, and governments and oil marketing companies are trying to juggle between absorbing or controlling inflation.
Petrol and diesel four-year price freeze ends
The hike in CNG prices on Friday came after petrol and diesel prices were raised by Rs 3 per litre at state-run companies, and it was the first time in the last four years that retail prices were revised.
Petrol prices were hiked from Rs 94.77 to Rs 97.77 per litre in the capital and those of diesel from Rs 87.67 to Rs 90.67 per litre. The petrol price has already crossed the 100-a-litre mark in key Indian cities like Mumbai, Kolkata, Chennai and Hyderabad.
But the revision still does not fully reflect higher global energy costs, industry observers said. Crude prices have been on the rise, and supply disruption worries are growing, which had started to weigh on the prices, but oil firms have decided to revise their rates after about 11 weeks.
Why is there an increase in fuel prices?
The current prices are influenced a lot by what is going on at the moment in terms of geopolitics in the world.
Crude market price risk is already high following the fierce conflict in Iran and, in particular, because of the risk of blockage of the Strait of Hormuz, which is a major oil way of the world.
Being a major crude oil importer, Indian fuel prices are quite sensitive to the global energy markets’ movements. A sustained spike in crude prices will hit oil marketing companies, transportation costs, and, ultimately, consumer inflation.
But market experts say the current price hikes seem to be a “calibrated increase” and not a complete pass-through of global prices, indicating that the government and oil firms may still be absorbing some part of the cost burden.
Will daily commuters and cab drivers feel the pressure?
The cost of everyday transport may show the biggest immediate effect.
A large number of public transport vehicles, auto-rickshaws, taxis and commercial fleets in cities like Delhi and Mumbai run on CNG. At the same time, fuel prices go up for petrol, diesel and gas, with operators in the transport sector already warning about higher costs of running their businesses.
Autorickshaw unions in Mumbai have already demanded a fare revision. The unions are demanding an increase of Re 1 in the minimum base fare, which is currently at ₹26.
If fuel prices stay high for a longer period, costs associated with delivery as well as logistics may also gradually increase.
The latest fuel price hikes could add to the monthly budget woes of middle-class families already facing the burden of expensive groceries, school fees and EMIs.
New Fuel Rates In Delhi
| Fuel Type | Old Price | New Price | Increase |
|---|---|---|---|
| Petrol | ₹94.77/litre | ₹97.77/litre | +₹3 |
| Diesel | ₹87.67/litre | ₹90.67/litre | +₹3 |
| CNG in Delhi | ₹77.09/kg | ₹79.09/kg | +₹2 |
Petrol Prices Today In Major Cities
| City | Petrol Price | Change |
|---|---|---|
| New Delhi | ₹97.77 | +₹3.00 |
| Mumbai | ₹106.64 | +₹3.10 |
| Kolkata | ₹108.74 | +₹3.29 |
| Chennai | ₹103.90 | +₹3.10 |
| Hyderabad | ₹110.89 | +₹3.39 |
| Bengaluru | ₹106.17 | +₹3.21 |
| Gurgaon | ₹98.29 | +₹2.99 |
Diesel Prices Today In Major Cities
| City | Diesel Price | Change |
|---|---|---|
| New Delhi | ₹90.67 | +₹3.00 |
| Mumbai | ₹93.14 | +₹3.11 |
| Kolkata | ₹95.13 | +₹3.11 |
| Chennai | ₹95.47 | +₹3.08 |
| Hyderabad | ₹98.96 | +₹3.26 |
| Bengaluru | ₹94.10 | +₹3.11 |
| Gurgaon | ₹90.77 | +₹3.00 |
What Next?
Much will also depend on global crude oil prices in the next few days.
Many feel fuel prices are unlikely to settle soon unless tensions further escalate in West Asia or any substantial supply disruption takes place in the Strait of Hormuz. This in turn will slowly translate into transport costs, food prices and eventually spending habits across the board.
For now consumers all over India are geared up for an onslaught of even costlier commutes, travel and transportation for the foreseeable future.
Priyanka Roshan is a business writer and chief sub-editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
