Delhi CNG price crosses ₹80/kg: IGL's 2nd hike in 48 hours amid Hormuz crisis
Synopsis
Key Takeaways
Indraprastha Gas Limited (IGL) on Sunday, 17 May raised compressed natural gas (CNG) prices by Re 1 per kg across its network in the Delhi-NCR region, pushing the Delhi rate past the ₹80-mark for the first time. The revision — the second in under 48 hours — compounds fuel cost pressures on millions of commuters, cab operators, and public transport users who rely on CNG daily.
The Latest Revision and Current Rates
Following Sunday's hike, CNG in Delhi now costs ₹80.09 per kg, crossing the psychologically significant ₹80 threshold. In Noida and Ghaziabad, the revised rate stands at ₹88.70 per kg. This comes just two days after IGL had already raised Delhi CNG prices by ₹2 per kg on 15 May, when the rate moved to ₹79.09 per kg. In effect, Delhi commuters have absorbed a ₹3 per kg increase in CNG costs within two days.
Petrol and Diesel Also Surge
The CNG revisions coincide with a broader retail fuel price increase announced by the Centre on 15 May. Petrol in Delhi was raised by approximately ₹3 per litre and now retails at ₹97.77 per litre, while diesel — up by nearly ₹3 per litre — costs ₹90.67 per litre. The simultaneous hikes across fuel categories mark a significant inflationary moment for household and commercial transport budgets across the capital.
The Global Trigger: Strait of Hormuz Blockade
The fuel price surge is directly linked to escalating tensions in West Asia and the continuing blockade of the Strait of Hormuz, one of the world's most critical energy transit corridors. Nearly one-fifth of global oil and gas trade passes through the narrow waterway, and supply disruptions have driven international crude oil prices sharply higher, with Brent crude crossing the $100 per barrel mark. India, as a major crude importer, is acutely exposed to such supply shocks.
Government's Defence of the Hikes
Responding to public criticism over rising fuel costs, Kiren Rijiju argued that India has managed to contain the increase relative to global peers. He noted that several countries have seen fuel prices rise by anywhere between 20 per cent and nearly 100 per cent, while India's petrol and diesel prices rose by only 3.2 per cent and 3.4 per cent, respectively. Rijiju added that even as global markets turned volatile, India's public sector oil marketing companies absorbed significant losses for weeks to shield consumers from a larger inflationary shock.
Impact on Commuters and What Comes Next
The back-to-back hikes are already straining household budgets, particularly for auto-rickshaw drivers, app-based cab operators, and daily wage earners dependent on CNG-run public transport. This is the first time Delhi CNG has crossed the ₹80 threshold, a milestone that analysts say could accelerate fare revisions in the shared mobility sector. Whether further hikes follow will depend on the trajectory of global crude prices and the duration of the Hormuz disruption — both of which remain uncertain.