Compressed Natural Gas (CNG) prices were increased by Re 1 per kg in Delhi-NCR on Saturday, marking the second hike in fuel prices within a week as rising global crude oil rates continue to put pressure on oil marketing companies.
With the latest revision, CNG in Delhi will now cost Rs 80.09 per kg, while consumers in Noida, Greater Noida and Ghaziabad will pay Rs 88.70 per kg. The latest increase comes just two days after CNG prices were raised by Rs 2 per kg on May 15, taking the cumulative increase in CNG rates to Rs 3 per kg in less than a week.
The earlier hike had come alongside a sharp increase in petrol and diesel prices across the country. On May 15, petrol and diesel rates were raised by Rs 3 per litre for the first time in more than four years as state-run fuel retailers began passing on part of the losses caused by soaring international crude oil prices amid the ongoing US-Iran war.
With the revision, petrol in Delhi now costs Rs 97.77 per litre, up from Rs 94.77, while diesel is priced at Rs 90.67 per litre compared to the earlier Rs 87.67. Prices vary across states due to differences in value-added tax.
CNG prices were also increased in Mumbai earlier this week, where the fuel now costs Rs 84 per kg. However, prices of piped natural gas supplied to households and domestic LPG cylinders have remained unchanged for now.
Global crude oil prices have surged by more than 50 per cent since US-Israeli strikes on Iran on February 28 and Tehran’s retaliatory actions disrupted energy flows through the Strait of Hormuz, a crucial route for global oil shipments.
Despite the spike in international crude prices, retail fuel rates in India had remained frozen for weeks as the government attempted to shield consumers from the immediate impact of rising energy costs. Opposition parties, however, accused the Centre of delaying the price revision due to ongoing Assembly elections in key states.
The latest price revision came shortly after the elections concluded, with the BJP strengthening its political position by winning three of the five poll-bound states, including West Bengal.
Petrol and diesel prices are now at their highest levels since May 2022. Fuel rates had largely remained unchanged since April 2022, barring a one-time reduction of Rs 2 per litre in March 2024 ahead of the Lok Sabha elections.
In Mumbai, petrol now costs Rs 106.68 per litre and diesel Rs 93.14 per litre. In Kolkata, petrol prices have risen to Rs 108.74 while diesel costs Rs 95.13. Chennai has also seen prices increase, with petrol now retailing at Rs 103.67 and diesel at Rs 95.25 per litre.
Industry sources said the latest hikes remain modest compared to the scale of increase in global crude prices and that oil marketing companies continue to absorb significant losses. According to industry estimates, retailers are still losing around Rs 11 per litre on petrol and Rs 39 per litre on diesel despite the revisions.
Private fuel retailers had already increased prices earlier. Nayara Energy raised petrol prices by Rs 5 per litre and diesel by Rs 3 in March, while Shell increased petrol prices by Rs 7.41 and diesel by Rs 25 per litre from April 1. In Bengaluru, Shell currently sells petrol at Rs 119.85 per litre and diesel at Rs 123.52.
Meanwhile, the government has also stepped up fuel conservation efforts. Prime Minister Narendra Modi recently urged citizens to reduce unnecessary travel, adopt work-from-home practices where possible and conserve fuel as high energy prices threaten to widen India’s current account deficit and strain foreign exchange reserves. Some state governments have already advised departments to reduce travel and physical meetings.
Analysts warned that the combined impact of higher petrol, diesel and CNG prices could eventually slow demand growth and add to inflationary pressures. India’s retail inflation rose to 3.48 per cent in April 2026 from 3.40 per cent in March, while wholesale inflation climbed to a 42-month high of 8.3 per cent, driven largely by rising fuel and energy costs.
