Compressed Natural Gas (CNG) will be costlier in Delhi and nearby regions from today. The CNG prices has been hiked by a rupee per kg in Delhi, in the second such hike in two days as the global energy markets finds itself rattled by the continued closure of the Strait of Hormuz due to the war in the Middle East.
CNG, which powers thousands of autos and cabs across the NCR, will now cost Rs 80.09 per kg in Delhi. The price is Rs 88.70 per kg in Noida and Ghaziabad and Rs 85.12 in Gurugram. It will cost Rs 88.58 per kg in Muzaffarnagar, Meerut and Shamli, Rs 91.42 per kg in Kanpur, Rs 89.44 in Ajmer, Rs 86.42 in Banda, and Rs 89.70 in Hapur.
The government had raised CNG prices by Rs 2 a couple of days ago in Delhi, raising it from Rs 77.09 per kg to Rs 79.09 per kg. A day earlier, a similar hike was seen in CNG prices in Mumbai – it now costs Rs 84 per kg in the financial capital.
| City | New CNG Price (Rs) |
| Delhi | 80.09 |
| Noida | 88.70 |
| Ghaziabad | 88.70 |
| Gurugram | 85.12 |
| Muzaffarnagar | 88.58 |
| Meerut | 88.58 |
Fuel prices were also increased for the first time in four years, with petrol and diesel costing about three rupees more since Friday.
Impact Of CNG Price Hike
The CNG price hike impacts public transportation, feeding into retail inflation.
With a large section of public transports now running on CNG, it is expected that the increased cost would be passed on to the commuters. In Mumbai, autorickshaw unions have already started demanding a rupee increase to the Rs 26 base fare.
Fare hikes, in general, erode household savings and reduce spending power of the masses. But a rise in CNG prices was expected on the account of a surge in global crude oil and gas prices due to Iran war.
The closure of the Strait of Hormuz, which handles one-fifth of the world’s oil flows, has impacted supplies across the world. This has made domestic prices unsustainable, with customers bearing the brunt of the increased costs.