Compressed natural gas (CNG) prices increased by $2 per kg on Friday, taking prices in Delhi to $83.09 per kg in Delhi as of Tuesday. This is the fourth rise in CNG prices in less than 15 days amid global energy supply disruptions due to conflict in West Asia.
The latest revision comes just three days after the previous rise of $1 in compressed natural gas prices.
Gasoline and diesel prices have also seen multiple hikes over the past two weeks amid the virtual closure of the Strait of Hormuz – the main waterway through which a fifth of the world’s energy needs pass – due to the conflict in West Asia sparked by US-Israeli strikes on Iran.
The exchange of drones and missiles closed the strait, which Iran de facto controls due to its geographical advantage.
Gasoline prices were raised by $2.61 liters and diesel $2.71 on Monday, the fourth increase in less than two weeks that extended a delay in the passage of higher global crude oil costs caused by the Iran conflict.
The latest increase has taken cumulative increases since May 15 to approx $7.5 per litre.
In Delhi, petrol prices rose $102.12 per liter of $99.51 – even further $100 liters for the first time since 2022 – while diesel rose to $95.20 from $92.49.
Industry executives and sector analysts said the further rally cycle was unlikely to end soon as the three state-run oil marketing companies (OMCs) were not only recovering existing revenue losses from petrol and diesel, but also making up for their earlier shortfall in recoveries of motor fuel and cooking gas, according to an earlier HT report.
Joint Secretary of the Ministry of Petroleum, Sujata Sharma, said that the initial daily losses of oil and gas companies were in the region of Rs $1,000 crore (before the first price hike on May 15), which was reduced to “slightly less than $600 crore” after the price hike. Sharma did not disclose the shortfall in recovery per liter of individual fuel products like petrol and diesel.
