The prices of Compressed Natural Gas (CNG) were hiked again on Sunday (May 17) by Re 1 per kg, marking the second increase in the last two days. The fresh hike comes amid continued pressure on fuel companies due to the ongoing blockade of the Strait of Hormuz in the backdrop of the escalating conflict in the Middle East.
Here’s the revised rates
In Delhi, CNG will now cost Rs 80.09 per kg, while in Noida and Ghaziabad, the revised rate stands at Rs 88.70 per kg.
- Delhi:ย Rs 80.09 per kg
- Noida:ย Rs 88.70 per kg
- Ghaziabad: Rs 88.70 per kg
Notably, this is the second increase in prices in two Days. Earlier on 15th May, CNG prices were increased to Rs 2/KG.
State-owned oil firms had kept fuel prices unchanged for 11 weeks despite a surge in input costs, but passed on part of the increase once operations became financially unsustainable. Prices have remained on freeze since April 2022, but had a one-off reduction of Rs 2 a litre each on petrol and diesel in March 2024 just before the Lok Sabha elections.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) had abandoned the daily price revision in April 2022 to insulate domestic consumers from a steep price increase that was warranted because of international oil prices shooting through the roof post Russia’s invasion of Ukraine.
They incurred heavy losses in the first half of the 2022-23 fiscal year, which they recouped when rates fell in subsequent months. But the war in West Asia has again sent international oil prices soaring by over 50 per cent. The basket of crude oil that India imports averaged USD 69 per barrel in February before the war in West Asia broke out. It averaged USD 113-114 per barrel in subsequent months.
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