CNG up by ₹2/kg again, Delhi prices rise ₹7 in 11 days

Consumers faced another blow on May 26 as CNG prices were raised by ₹2 per kg, marking the fourth increase in just 11 days and taking the cumulative hike in Delhi to ₹7 per kg since May 15.

With the latest revision effective from 6 am on May 26, CNG in Delhi now costs ₹83.09 per kg.

This is the third CNG price increase in the last nine days. Prices were earlier raised by ₹1 per kg on May 25, following another ₹1 per kg hike on May 23 and a ₹2 per kg increase on May 15.

Despite the sharp rise in CNG rates, there has been no change so far in piped natural gas supplied to households or in domestic LPG cylinder prices.

The repeated hikes come as oil marketing companies face mounting pressure from rising global crude prices. Industry sources said concerns over possible disruptions in the Strait of Hormuz, a crucial global oil transit route, have intensified amid the ongoing US-Iran conflict.

Global crude markets have remained volatile due to supply fears linked to escalating tensions in the Gulf region. Brent crude is currently trading at $86 per barrel, up sharply from $72 before the Middle East conflict escalated on February 28.

Oil prices continue upward climb

The CNG hike comes just three days after petrol and diesel prices were revised upward across India on May 24, marking the third increase in fuel rates this month.

According to PTI, petrol prices rose by 87 paise per litre, while diesel increased by 91 paise per litre. In Delhi, petrol now costs ₹99.51 per litre, up from ₹98.64, while diesel has climbed to ₹92.49 per litre from ₹91.58.

State-run oil marketing companies have continued passing on higher international oil costs to consumers, even as the Petroleum Ministry has assured the public that India has adequate fuel supplies and there is no shortage.

Fuel prices vary across states because of differences in local taxes and levies.

India’s retail fuel market is dominated by Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, which together account for nearly 90% of total fuel sales nationwide.

International crude prices have surged more than 50% since late February, driven by escalating tensions in West Asia, including US-Israeli military action against Iran and fears over supply disruptions through the Strait of Hormuz, one of the world’s busiest oil shipping lanes.

Earlier, the government had held back retail fuel price hikes to shield consumers from inflationary pressure despite rising import costs.

Wider impact across sectors

Analysts warn that repeated fuel price increases could push up transportation and logistics costs, eventually leading to higher prices for essential goods and food items.

The latest revisions are also expected to add pressure on commuters, transport operators and businesses already dealing with rising operating costs.

Government officials have defended the hikes, saying they are necessary to manage increasing crude import costs and ensure stable fuel supplies during prolonged geopolitical uncertainty.

India imports nearly 85% of its crude oil requirements, making domestic fuel prices highly vulnerable to global market swings. Concerns over possible disruptions in the Strait of Hormuz have further heightened fears around energy security.