Commuters in Delhi and Mumbai are facing higher transportation costs as Compressed Natural Gas (CNG) prices have been hiked by ₹2 per kilogram. This revision, effective May 15, 2026, brings the price of CNG in Delhi to ₹79.09 per kg, while Mumbai's rate, set by Mahanagar Gas Limited (MGL), now stands at ₹84 per kg, making it one of the highest in the country.
Global Conflict Drives Domestic Fuel Costs
The latest increase is attributed to the ongoing Iran conflict and disruptions in global energy markets, particularly the Hormuz blockade. These international pressures have led to a surge in crude oil and gas prices, making it unsustainable for domestic suppliers to maintain previous rates without passing some costs to consumers.
Impact on Commuters and Public Transport
The price hike directly affects daily commuters, as a significant portion of public transport, including auto-rickshaws and taxis, operates on CNG. In Mumbai, auto-rickshaw unions have swiftly responded, calling for a ₹1 increase in the base fare from the current ₹26, arguing that the new CNG prices make existing rates unviable.
Broader Economic Ripple Effect
This CNG price adjustment follows a recent ₹3 per litre hike in petrol and diesel prices earlier this week. Petrol in Delhi now costs ₹97.77 per litre, and diesel is ₹90.67 per litre. These consecutive fuel price increases, coupled with earlier rises in essential commodities like milk, are expected to fuel broader inflation. Economists warn that increased transportation and logistics costs will likely erode household spending power, slow real consumption, and potentially pressure GDP growth.
The government and energy companies note that passing on a portion of these increased global costs to consumers was largely unavoidable given the current geopolitical landscape and its impact on energy supply chains.