CNG Prices Hiked by Up to ₹2, Reaches ₹83.09 per kg in Delhi: 4th Increase This Month

Amidst the conflict involving Iran, the prices of Compressed Natural Gas (CNG) have risen for the fourth time within the last two weeks. Indraprastha Gas Limited (IGL) hiked the price of CNG by ₹2 per kilogram today, Tuesday, May 26. These price increases have been implemented across several cities, including Delhi-NCR.

Here are the new rates for Delhi and NCR cities:

*   In Delhi, the price of CNG has risen from ₹81.09 per kg to ₹83.09 per kg.
*   In Noida, Ghaziabad, and Greater Noida, consumers will now have to pay ₹91.70 for CNG.
*   In Gurugram, the price of CNG has been increased to ₹88.12 per kilogram.

Petrol and Diesel Prices Rise for the Fourth Time This Month

On May 25, oil companies hiked the prices of petrol and diesel by ₹2.61 and ₹2.71 per liter, respectively. Following this increase, the price of petrol in Delhi now stands at ₹102.12 per liter, while diesel is priced at ₹95.20 per liter.

Why Have Petrol, Diesel, and CNG Prices Increased?

The primary reason behind the hike in petrol, diesel, and CNG prices is the fluctuation in crude oil rates within the international market. Prior to the outbreak of the conflict involving Iran and the US, crude oil prices stood at $70 per barrel; they have now surged past the $100 per barrel mark.

Oil companies were under pressure due to the rising cost of crude oil. Consequently, they have taken this step to offset their financial losses. If the upward trend in crude oil prices persists for an extended period, the prices of petrol, diesel, and CNG could be hiked further.

Oil Companies Incurring Daily Losses of ₹600 Crore

On May 25, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, stated that state-run oil companies are currently incurring daily losses of approximately ₹600 crore.

Prior to the price revisions that began on May 15, these companies were already facing daily losses of around ₹1,000 crore on the sale of petrol, diesel, and domestic cooking gas. Prices of other commodities may also rise…

**Freight Charges to Increase:** Truck and tempo rentals will go up, making vegetables, fruits, and groceries arriving from other states more expensive.

**Agricultural Costs:** Farmers will have to incur higher expenses to operate tractors and pumping sets, which will lead to an increase in the cost of food grains.

**Bus and Auto Fares:** An increase may also be observed in the fares for public transport and school buses.

CNG Vehicle Sales Rise by Up to 50%

Over the last three years, sales of CNG vehicles in Bhopal have surged by up to 50%. On average, 10 to 15 CNG-powered vehicles are being sold from showrooms every day. The primary reason for this trend is the superior mileage offered by CNG compared to petrol and diesel. Additionally, CNG rates are also lower.

**Knowledge Corner:**

What is CNG, and how is it produced?

CNG stands for Compressed Natural Gas. It is primarily composed of methane gas and causes significantly less pollution compared to petrol and diesel. This gas is extracted naturally from oil and gas wells located deep underground.

Subsequently, it undergoes a refining process in factories to remove moisture and impurities. The natural gas is then subjected to extremely high pressure, causing this voluminous gas to compress and occupy a much smaller space. This compressed gas is then filled into cylinders and utilized as fuel in vehicles.