CNG prices in Delhi and Mumbai have been increased by Rs 2 per kg amid global energy market disruptions linked to the Iran conflict, raising concerns over higher public transport fares.
Daily commuters in Delhi and Mumbai are set to face higher travel costs after compressed natural gas (CNG) prices were increased by Rs 2 per kg amid disruptions in the global energy market linked to the Iran conflict and Hormuz blockade concerns. In Delhi, the revised CNG price has gone up from Rs 77.09 per kg to Rs 79.09 per kg. In Mumbai and nearby areas under the Mumbai Metropolitan Region (Mumbai, Thane, Navi Mumbai, adjoining Municipalities, and Raigarh District), the new CNG price now stands at Rs 84 per kg.
“Starting midnight tonight, the price of CNG will increase by Rs 2 per kg, bringing the revised rate to Rs 84 per kg in and around the city,” said an MGL official on Wednesday (May 14) evening.
The latest hike comes amid rising global energy market uncertainty due to tensions involving Iran and concerns over disruptions in the Strait of Hormuz, a critical global oil and gas shipping route. And as a ripple effect, any disruption in crude oil and gas supply chains impacts fuel pricing in India, including petrol, diesel, and CNG. The increase follows recent fluctuations in international fuel prices, which have already started affecting transportation and logistics sectors across several Indian cities.
The fresh revision also comes shortly after hikes in petrol and diesel prices, increasing pressure on household budgets and public transport operators.CNG prices in Mumbai remain higher than in Delhi, with rates hovering around Rs 84 per kg in Mumbai. The price gap is mainly driven by Mumbai’s greater reliance on costly imported LNG, higher local VAT rates, and additional transportation and distribution expenses.
According to reports, Mahanagar Gas Limited is currently facing increased procurement costs amid geopolitical tensions in West Asia, while Delhi’s supplier Indraprastha Gas Limited benefits from relatively stable and lower-cost gas allocations.The CNG price hike is expected to directly impact public transportation costs because a large number of autorickshaws, taxis and buses in Delhi and Mumbai operate on CNG.
In Mumbai, autorickshaw unions have already demanded a fare revision following the hike. Unions are seeking a Rs 1 increase in the current base fare of Rs 26.
Transport operators say the rising fuel burden is becoming difficult to absorb without increasing fares. If approved, commuters may soon have to pay more for short-distance travel as well.
https://www.timesnownews.com/delhi/cng-price-hike-explained-why-mumbai-rates-are-higher-than-delhi-and-is-auto-taxi-bus-fares-to-rise-next-article-154323540