Petrol, Diesel Prices Hike: CNG Rates Increase by Rs 2, Will Petrol and Diesel Prices Rise Again?

Fuel Prices Surge Amid Global Energy Costs: CNG Rates Hike by Rs 2 per Kg in Delhi-NCR

Compressed Natural Gas (CNG) prices in Delhi-NCR have witnessed their fourth increase in just two weeks, with the latest revision taking the price to Rs 83.09 per kg in Delhi. Consumers in Noida and Ghaziabad will have to pay Rs 91.70 per kg for CNG. The government had previously increased CNG prices by Rs 2 on May 15, followed by hikes of Rs 1 each on May 18 and May 23.

The recent price revision comes amidst mounting concerns over broader fuel price pressures, with state-run oil companies continuing to pass on the impact of elevated energy costs triggered by the ongoing Middle East conflict. The sharp rise in CNG prices has also sparked speculation that another round of fuel price revisions could be on the horizon.

Petrol and Diesel Prices Climb to Highest Levels Since May 2022

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Petrol and diesel prices have been raised again by Rs 2.61-2.71 per litre, as state-run fuel retailers continued passing on the impact of elevated global crude oil prices to consumers. This latest revision sees petrol and diesel prices reach their highest levels since May 2022.

The recent hike in fuel prices follows a prolonged period during which retail fuel prices were kept unchanged despite soaring crude oil prices, narrowing refining margins, and a weakening rupee increasing import costs. The sharp rise in fuel rates has renewed concerns over inflationary pressures and higher transportation costs across the economy after the long freeze in fuel price revisions ended.

The government's decision to reduce excise duty on petrol and diesel in a few weeks ago was aimed at shielding consumers from rising crude prices. However, persistently high global oil rates have now forced oil marketing companies to raise retail prices. According to Finance Minister Nirmala Sitharaman, the excise duty cut is expected to have a revenue impact of nearly Rs 1 lakh crore.

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Economists believe that if international crude oil prices remain elevated, periodic hikes in petrol and diesel rates could become the new normal. The latest hikes have sparked concerns over inflationary pressures and higher transportation costs across the economy, and it remains to be seen how the government will address these concerns in the coming weeks.