The burden of adjustment falls on those with the least room to adjust.
For the second consecutive day, the cost of compressed natural gas has risen across Delhi-NCR, reaching Rs 80.09 per kilogram — a small number that carries enormous weight for the millions who depend on CNG-powered transport to navigate their daily lives. The cause lies far beyond India's borders: the closure of the Strait of Hormuz amid Middle East conflict has disrupted the flow of one-fifth of the world's oil, sending crude prices surging and the rupee under pressure. India, which imports most of its energy, is absorbing a global shock in the most intimate of ways — through the fares paid by autorickshaw passengers, the budgets of working families, and the quiet arithmetic of what can no longer be afforded.
- CNG prices have jumped twice in 48 hours, rising from Rs 77.09 to Rs 80.09 per kilogram in Delhi, with parallel hikes hitting Mumbai, Noida, Gurugram, and beyond — no city in the region is insulated.
- The Strait of Hormuz closure has effectively weaponized global energy markets against import-dependent economies like India, triggering simultaneous price surges across CNG, petrol, and diesel for the first time in years.
- State oil companies are bleeding roughly Rs 1,600 crore every single day, caught between soaring global crude costs and a government unwilling to fully pass those costs to consumers for fear of stoking inflation.
- Mumbai's autorickshaw unions are already demanding fare increases, and across the country transport operators are signaling that commuters — not companies — will ultimately absorb the difference.
- Prime Minister Modi has urged citizens to conserve fuel and work remotely, but the appeal lands unevenly: for a taxi driver or daily-wage commuter, there is no remote option, and the burden of adjustment falls hardest on those with the least flexibility.
The price of compressed natural gas rose again in Delhi on Saturday — the second hike in as many days — bringing the cost to Rs 80.09 per kilogram. The increases are spreading across the National Capital Region, with prices reaching Rs 88.70 in Noida and Ghaziabad, Rs 85.12 in Gurugram, and Rs 91.42 in Kanpur. The trigger is global: the Strait of Hormuz, through which one-fifth of the world's oil travels, has been shut by Middle East conflict, sending crude prices sharply higher and putting pressure on the rupee. India, which imports the vast majority of its energy, is feeling the consequences in real time.
Indraprastha Gas Limited, the region's primary CNG distributor, described the hike as a partial measure — absorbing only some of the rising input costs and currency pressure rather than passing them on in full. The company noted that CNG still offers roughly 45 percent savings over other fuels, but that comparison provides little relief to commuters who have no alternative. The government had already raised CNG prices by two rupees earlier in the week, and petrol and diesel have also climbed by about three rupees since Friday — a simultaneous surge across every major fuel type.
The financial strain extends well beyond the pump. India's state-run oil marketing companies are losing approximately Rs 1,600 crore per day, forced to buy crude at elevated global prices while the government resists full pass-through increases to contain inflation. The companies have sought relief; the government has held firm. Meanwhile, Mumbai's autorickshaw unions have begun demanding a one-rupee increase to the base fare, and similar pressures are building across the country. When transport costs rise, household budgets quietly contract — less for food, medicine, education, and savings.
Prime Minister Modi last week called on citizens to conserve fuel and work from home where possible, framing reduced demand as a way to ease pressure on foreign exchange reserves. But the appeal assumes a flexibility that most working people do not have. The Strait of Hormuz remains closed, global crude prices remain elevated, and the government continues to navigate between protecting oil companies from collapse and shielding ordinary households from inflation. For now, the increases keep arriving, and those with the least room to absorb them keep paying.
The price of compressed natural gas jumped again in Delhi on Saturday morning, marking the second increase in as many days. A kilogram of CNG now costs Rs 80.09 in the capital, up from Rs 79.09 just twenty-four hours earlier. Across the National Capital Region, the ripples spread outward: Rs 88.70 in Noida and Ghaziabad, Rs 85.12 in Gurugram, Rs 91.42 in Kanpur. The hikes keep coming because global energy markets have seized up. The Strait of Hormuz, the narrow waterway through which one-fifth of the world's oil passes, has been closed due to fighting in the Middle East. That blockade has sent crude prices soaring, and India—which imports most of its energy—is feeling the shock in real time.
Indraprastha Gas Limited, the major distributor that sets CNG prices across the region, framed the increase as a necessary adjustment. The company said it was raising prices only to partially absorb the impact of higher input gas costs and the sharp appreciation of the US dollar against the rupee. Even after the hike, IGL noted, CNG still offers roughly 45 percent savings compared to vehicles running on other fuels. But that math offers cold comfort to the millions of people who depend on CNG-powered autos and taxis to move through the city each day.
The government had already raised CNG prices by two rupees just days before this latest jump, pushing the price from Rs 77.09 to Rs 79.09 per kilogram. In Mumbai, a similar pattern unfolded—CNG now costs Rs 84 per kilogram in India's financial capital. For the first time in four years, petrol and diesel prices have also climbed, each rising by about three rupees since Friday. The cascade of increases is unmistakable: energy costs are moving upward across every fuel type simultaneously.
When CNG prices rise, the burden does not stop at the pump. Thousands of autorickshaws and buses that run on the fuel must absorb the cost somehow, and operators have already begun signaling that passengers will pay the difference. In Mumbai, autorickshaw unions have started demanding a one-rupee increase to the base fare, which currently sits at Rs 26. These fare hikes ripple through household budgets across the region. When commuters spend more on transportation, they have less to spend on food, education, medicine, and savings. The erosion happens quietly, but it is real.
Behind the price increases lies a deeper financial crisis. India's state-run oil marketing companies—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum—are hemorrhaging money. They are forced to buy crude oil at elevated global prices but have been unable to pass the full cost to consumers because the government has resisted large price hikes to keep inflation in check. The daily losses have mounted to approximately Rs 1,600 crore. The oil companies have appealed for relief, but the government has held firm, prioritizing inflation control over immediate corporate relief.
Prime Minister Narendra Modi made a public appeal last week asking citizens to conserve fuel and work remotely where possible. The logic is straightforward: lower demand would reduce crude consumption and ease pressure on India's foreign exchange reserves. But such appeals assume flexibility that many people simply do not have. A taxi driver cannot work remotely. A commuter cannot choose to stop traveling to work. The burden of adjustment falls on those with the least room to adjust.
What happens next depends on forces largely beyond India's control. The Strait of Hormuz remains closed. Global crude prices remain elevated. The government continues to balance the competing pressures of protecting oil companies from total collapse while protecting ordinary households from inflation. For now, the price increases keep coming, and the people who depend on CNG to move through the city each day keep paying.
Notable Quotes
The revision in retail prices of CNG has been effected only to marginally offset the impact of increase in input gas cost along with steep appreciation of USD.— Indraprastha Gas Limited
Even after revision, CNG would still offer up to 45% savings towards the running cost when compared to vehicles running on alternate fuel at the current level of prices.— Indraprastha Gas Limited
The Hearth Conversation Another angle on the story
Why does a closure thousands of miles away in the Middle East show up as a one-rupee increase at a Delhi CNG pump?
Because India imports most of its energy. When the Strait of Hormuz closes, global oil prices spike. India has to buy at those higher prices. The distributor can only absorb so much loss before raising prices at the pump.
But the company says it's only raising prices to "marginally offset" the increase. That sounds like they're not passing the full cost through.
They're not. The oil companies are losing Rs 1,600 crore every single day because they're buying expensive crude but can't raise prices as much as they'd like. The government won't let them, because it's worried about inflation. So the companies bleed money, and prices still go up anyway.
Who actually bears the cost in the end?
The commuter. When an autorickshaw operator's fuel costs rise, he raises fares. When fares rise, a household's transportation budget grows. That money has to come from somewhere else—food, savings, medicine. It's a quiet transfer of burden downward.
Is there a way out of this?
Not a quick one. The Strait of Hormuz would need to reopen. Global crude prices would need to fall. Or India would need to find alternative energy sources fast enough to matter. The Prime Minister asked people to work remotely and save fuel, but that only works if you have the choice to work remotely.
So this is just the beginning?
Likely. As long as the strait stays closed and global prices stay high, the pressure on domestic prices will remain. The government is trying to hold the line on inflation, but the math is getting harder.