CNG prices hiked by Rs 2 in Delhi and Mumbai as Hormuz blockade squeezes India's energy prices

The fuel price squeeze is widening. A day after petrol and diesel were hiked across the country, compressed natural gas prices have also been revised upward — this time by Rs 2 per kg — as global energy markets continue to feel the pressure of the Iran conflict and disruptions linked to the Hormuz blockade.

In Delhi, CNG prices have moved from Rs 77.09 to Rs 79.09 per kg. In Mumbai, Mahanagar Gas Limited had already moved first. "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," an MGL official said on Wednesday evening — putting Mumbai's CNG rate among the highest in the country.

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Commuters and auto unions feel the pinch

The timing could not be worse for daily commuters. With most public transport now running on CNG, the Rs 2 hike feeds directly into the cost of getting around. In Mumbai, autorickshaw unions have already responded — pressing for a Re 1 increase in the base fare of Rs 26, arguing the hike makes current rates unviable.

Petrol and diesel: where prices stand

The CNG revision follows a Rs 3 per litre hike in petrol and diesel prices earlier this week. Petrol in Delhi now costs Rs 97.77 per litre, up from Rs 94.77, while diesel has risen to Rs 90.67 from Rs 89.67. Across other metros, petrol stands at Rs 108.74 in Kolkata, Rs 106.68 in Mumbai and Rs 103.67 in Chennai. Diesel is now Rs 95.13 in Kolkata, Rs 93.14 in Mumbai and Rs 95.25 in Chennai.

The inflation ripple

The back-to-back hikes in fuel and CNG — coming on the heels of a milk price increase earlier this week — are beginning to add up in ways that go beyond the pump. CNG price increases raise transportation and logistics costs across the board, feeding into broader inflation and eroding household spending power.

The logic running through the economy is straightforward: when essential prices rise, real consumption slows. When consumption slows, production weakens. When production weakens, GDP growth comes under pressure.

The trade-off, however, was largely unavoidable. Global crude oil and gas prices have surged on the back of the Iran war, making current domestic prices unsustainable. A portion of that cost increase, economists note, had to be passed on to consumers — and it now has been, in quick succession.