Commuters and transporters in the Delhi-National Capital Region are facing increased costs as Compressed Natural Gas (CNG) prices have risen for the second time in just two days. Effective Sunday, May 17, 2026, CNG rates climbed by Re 1 per kilogram, pushing the price in Delhi to Rs 80.09 per kg. In Noida and Ghaziabad, consumers will now pay Rs 88.70 per kg.
Consecutive Hikes Amid Global Pressures
This latest adjustment follows a Rs 2 per kg increase implemented on May 15. The series of hikes reflects persistent global energy market pressures, which continue to drive up fuel costs across India. These increases come shortly after the government's decision to raise petrol and diesel prices by Rs 3 per litre each on Friday, marking the first such revision in over four years.
Following Friday's revision, petrol in Delhi now costs Rs 97.77 per litre, up from Rs 94.77, while diesel prices rose to Rs 90.67 per litre from Rs 89.67.
Impact of International Crude Oil Volatility
The surge in domestic fuel prices is directly linked to significant volatility in international crude oil markets. Global crude prices soared past $120 per barrel earlier this year following geopolitical tensions, including a US-Israel attack on Iran on February 28 and Tehran's subsequent retaliation, which disrupted shipping through the critical Strait of Hormuz. Although prices have since eased, crude continues to trade in the $104-$110 per barrel range, maintaining pressure on fuel retailers and import-dependent nations like India.
State-run oil marketing companies have reportedly incurred substantial losses due to the prolonged freeze in domestic fuel prices. Prior to Friday's price adjustments, industry estimates suggested losses of approximately Rs 14 per litre on petrol, Rs 42 per litre on diesel, and Rs 674 per cylinder on LPG.
Historical Context and Future Outlook
Petrol and diesel prices had largely remained unchanged since April 2022, with the exception of a one-time Rs 2 per litre reduction in March 2024 ahead of the Lok Sabha elections. While India officially operates under a deregulated fuel pricing mechanism, revisions are often influenced by political considerations, particularly during election cycles.
The recent CNG price hikes are anticipated to exert additional pressure on transport costs and household budgets across the Delhi-NCR region, where a substantial number of vehicles and public transport fleets rely on compressed natural gas.