The compressed natural gas (CNG) price has been hiked in Delhi, increasing cost pressures on transportation and logistics, after a nationwide increase in fuel prices. The recent changes follow continued high crude prices and supply concerns faced by the oil marketing companies (OMCs) as a result of the conflict in West Asia and the Hormuz blockade.
In the Delhi region, the cost of CNG has increased by Rs. 2 per kg, and as of May 15, 2026, the new rate is Rs. 79.09 per kg. The hike came after a similar hike by Mahanagar Gas Limited (MGL) in the Mumbai Metropolitan Region (MMR), where they hiked CNG prices by Rs. 2 per kg.
“Starting midnight tonight, the price of CNG will be increased by Rs. 2 per kg, taking the revised rate to Rs. 84 per kg in and around the city,” an MGL official said on Thursday evening.
The hike in CNG prices follows petrol and diesel price hikes by OMCs across the country by around Rs. 3 per litre. The prices of petrol and diesel increased in Delhi from Rs. 94.77 to Rs. 97.77 per litre and Rs. 90.67 per litre, respectively.
The price of petrol in Mumbai is now Rs. 106.68 a litre with diesel at Rs. 93.14. The trend was replicated in Kolkata and Chennai, where crude oil prices also surged due to the global price hike and its effect on the domestic fuel markets.
Market analysts report that high energy prices and concerns over oil supply interruption due to geopolitical tensions are fueling energy inflation in several economies.
The hike is likely to affect public transport and delivery services since a large number of autorickshaws, cabs, buses and logistics companies run on CNG.
After the announcement, Mumbai's autorickshaw unions had called for a fare hike. The union wants to raise the minimum fare by Rs. 1, which currently stands at Rs. 26.
According to Mathrubhumi, transport operators argue that repeated increases in fuel costs are making operations financially difficult, particularly for drivers dependent on daily passenger income.
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The price increased aligned with Prime Minister Narendra Modi's call for control measures and saving fuel. The government has encouraged citizens to cut energy usage and use more environmentally friendly and sustainable sources of energy where possible.
However, industry sources say that unless crude oil prices come down and geopolitical tensions ease, gas and diesel may continue to witness volatility over the next few months, adding to inflation concerns in the transportation and consumer goods industries.