Post by : Shakul
In a troubling trend, the price of Compressed Natural Gas (CNG) has risen again across New Delhi and surrounding areas, marking the third adjustment in a short span. The latest increment of Re 1 per kilogram brings the retail cost of CNG in Delhi to Rs 81.09 per kilogram, adding financial strain to commuters, transport services, and middle-income households grappling with escalating living expenses.
Effective from early Friday, the revised rates have affected multiple cities within the National Capital Region. For instance, CNG is now priced at Rs 89.70 per kilogram in Noida, Ghaziabad, and Greater Noida, while in Gurugram, it's Rs 86.12 per kilogram, and Ajmer has seen an increase to Rs 90.44 per kilogram. This series of hikes particularly impacts those relying on CNG vehicles for daily travel and business.
Since May 15, this marks the third raise in CNG tariffs. Earlier this month, a Rs 2 increase was followed by another Re 1 hike on May 18. The latest price adjustment signals distress in the global energy market, as geopolitical instability continues to affect oil and gas supplies worldwide.
Experts point to the volatile situation in the Middle East and concerns regarding the Strait of Hormuz as significant contributors to rising fuel prices. This critical route transports roughly one-fifth of the global oil supply, and worries about potential disruptions have led to spikes in international crude prices. Consequently, India, which relies heavily on imported energy, is feeling the repercussions of these global market fluctuations.
The latest hike in CNG prices is set to influence the entire transportation sector. Numerous auto-rickshaws, taxis, buses, and commercial vehicles running on CNG are favored for their affordability and lower emissions compared to traditional fuels. Transport operators might have to raise fares to counterbalance rising fuel expenses, which could have far-reaching effects on the millions who commute daily.
Economists caution that ongoing fuel price increases may exacerbate retail inflation soon. Higher transportation costs tend to elevate prices for goods and services, particularly impacting sectors like food delivery and public transport. With escalating household costs, this hike further complicates financial planning for consumers.
Sources indicate that state-run oil companies like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are facing substantial financial losses due to the increasing cost of crude oil imports. Industry estimates suggest these firms are losing around Rs 1,600 crore daily because retail prices aren’t adequately reflecting soaring international rates.
Although oil companies have pushed for larger price hikes, the government has previously aimed to manage inflation and shield consumers from sudden economic blows. As global prices continue their ascent, companies have gradually begun to transfer some of the financial load onto consumers through regular smaller adjustments.
This scenario has initiated discussions on fuel conservation and alternative working arrangements. Prime Minister Narendra Modi has recently called on citizens to save fuel and encouraged remote working to lower energy consumption and mitigate the burden on imports. Experts believe these initiatives could help decrease demand during uncertain periods.
Industry analysts are keeping a close watch on international crude movements, as any further escalation in the Middle East could prompt additional fuel price hikes in India. Both consumers and transport operators remain anxious about potential future increases in CNG prices amid continued instability in the global energy market.
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