CNG prices raised again as fuel costs surge amid West Asia conflict

Compressed Natural Gas (CNG) prices were increased by Rs 2 per kilogram on Friday, marking the fourth hike in less than a fortnight as disruptions in global energy supplies linked to the West Asia conflict continue to push up fuel costs.

With the latest revision, CNG in Delhi will cost Rs 83.09 per kg from Tuesday onwards. The increase comes just three days after the previous Rs 1 per kg hike.

Petrol and diesel prices have also witnessed repeated increases over the past two weeks, driven by rising international crude oil prices and supply concerns linked to tensions in West Asia.

The conflict, triggered by military strikes involving the United States, Israel and Iran, has severely disrupted shipping through the Strait of Hormuz — a critical maritime route through which nearly a fifth of global energy supplies pass. Missile and drone exchanges in the region have effectively curtailed movement through the waterway, over which Iran holds significant strategic influence.

On Monday, petrol prices were raised by Rs 2.61 per litre and diesel by Rs 2.71 per litre, marking the fourth increase in under two weeks. Since 15 May, cumulative increases in both fuels have reached nearly Rs 7.50 per litre.

In Delhi, petrol prices rose to Rs 102.12 per litre from Rs 99.51, crossing the Rs 100 mark for the first time since 2022. Diesel prices climbed to Rs 95.20 per litre from Rs 92.49.

Industry officials and analysts said the state-run oil marketing companies (OMCs) were likely to continue raising prices in the coming weeks as they attempt to offset mounting losses caused by elevated crude prices.

Apart from recovering current losses on petrol and diesel sales, the companies are also believed to be compensating for earlier under-recoveries on transport fuels and subsidised cooking gas.

Petroleum ministry joint secretary Sujata Sharma said the daily losses faced by OMCs had initially touched around Rs 1,000 crore before the first fuel price increase on 15 May. Following successive hikes, those losses have now fallen to “slightly less than Rs 600 crore” per day.

However, Sharma did not provide a breakdown of under-recoveries on individual fuel products such as petrol and diesel.

With IANS inputs