Prices are rising too much. Drivers are not getting any benefit.
Twice in two days, the price of compressed natural gas rose across Delhi and its surrounding cities, carrying with it the distant tremors of conflict in West Asia. State-run oil companies, absorbing the pressure of volatile global markets, passed the cost onward — as they have before, and may again. For the millions who move through this vast metropolis by fuel and by labor, the arithmetic of survival quietly shifted, while the fares they are permitted to charge did not.
- CNG prices in Delhi-NCR surged Rs 3/kg in just 48 hours, with petrol and diesel also climbing Rs 3/litre in the same week — a compounding shock to household and livelihood budgets.
- The trigger is geopolitical: West Asia conflict has destabilized global energy supplies, and state oil companies warn that even these back-to-back hikes cover only a fraction of the actual international price surge.
- Taxi drivers and auto-rickshaw operators are caught in a vice — fuel costs escalating rapidly while government-regulated passenger fares remain frozen, squeezing margins that were already thin.
- Consumer advocates and drivers are pressing the government for relief: either reduce CNG prices through subsidy or allow fare revisions that reflect the new cost reality.
- Industry sources signal the pressure is not yet spent — further hikes may be imminent, leaving commuters and operators bracing for what Monday morning might bring.
On Sunday morning, CNG prices rose again across Delhi and its satellite cities — the second increase in two days. Delhi drivers now pay Rs 80.09 per kg; those in Noida and Ghaziabad face Rs 88.70 per kg. The cumulative jump over 48 hours was Rs 3 per kg, following an earlier Rs 2 increase on May 15 that had already pushed prices sharply upward.
State-run oil companies pointed to the same cause they have cited before: international energy markets, unsettled by the ongoing conflict in West Asia, have driven input costs beyond what can be quietly absorbed. Petrol and diesel had already risen Rs 3 per litre earlier in the week — petrol now at Rs 97.77 and diesel at Rs 90.67 in Delhi. Sources close to the industry cautioned that even these consecutive hikes represent only a partial recovery of what global prices have actually climbed. More increases may follow.
At a CNG station on Lodhi Road, the human cost was plain. A taxi driver laid out his arithmetic: fuel costs up Rs 4 in two days, fares unchanged by government order, bills still due. The gap between what he spends and what he earns had widened, and no relief was in sight. His ask was straightforward — lower the price, or raise the fare.
The deeper tension is structural. Oil companies respond to forces beyond their borders. The government, which owns those companies, has not moved on the regulated fares that govern what drivers can charge. And the drivers themselves — many operating on the thinnest of margins — are left between two immovable walls. Whether the government acts on fares, whether prices stabilize, or whether another hike is already being prepared, remains the open question hanging over the city's roads.
The price at the pump climbed again on Sunday morning across Delhi and its satellite cities. Compressed natural gas, the fuel that powers much of the region's taxi fleet and public transport, jumped another rupee per kilogram—the second increase in as many days. In Delhi, CNG now costs Rs 80.09 per kg. In Noida and Ghaziabad, drivers are paying Rs 88.70 per kg. Two days earlier, on May 15, the same fuel had risen by Rs 2 per kg, pushing the Delhi price from Rs 77.09 to Rs 79.09. In 48 hours, the cumulative increase was Rs 3 per kg.
The oil companies that set these prices—all state-run—offered the same explanation they have offered before: international energy markets are volatile, input costs are rising, and these hikes are necessary to absorb the pressure. The trigger, they noted, traces back to the conflict in West Asia, which has unsettled global fuel supplies and sent prices climbing. But sources close to the industry told news agencies that even with these two consecutive increases, the companies are still covering only a fraction of what global prices have actually surged. More hikes may be coming.
The broader fuel picture in the capital had already shifted earlier in the week. Petrol and diesel both rose by Rs 3 per litre on the same day as the first CNG increase. Petrol in Delhi now sells for Rs 97.77 per litre, up from Rs 94.77. Diesel climbed from Rs 87.67 to Rs 90.67 per litre. For a city where millions depend on motorized transport to move through traffic and earn a living, the arithmetic was becoming harder to ignore.
At a CNG station on Lodhi Road, a consumer expressed what many were feeling: prices were rising too fast, and there was no corresponding benefit for drivers. Another commuter, speaking to a news agency, laid out the mathematics of survival. His vehicle's CNG costs had jumped Rs 3 in the first hike and another rupee on Sunday. But the fare he could charge passengers—the money that actually paid his bills—had not moved. The government had not raised it. His expenses were climbing while his income stayed flat. For people like him, he said, the difference was substantial. He had a simple request: bring down CNG prices, or let taxi fares rise to match.
This tension sits at the heart of the story. The oil companies are responding to global market forces beyond their control. The government, which owns these companies, has not adjusted the regulated fares that taxi drivers and auto-rickshaw operators can charge. And the drivers themselves—many of them poor, many of them operating on thin margins—are caught between two immovable objects. The conflict in West Asia remains unresolved. International energy prices remain elevated. The question now is whether the government will move on fares, whether the price increases will stabilize, or whether another hike is already being calculated in some corporate office, waiting for Monday morning.
Notable Quotes
Prices are rising too much and they should come down. It is definitely having an impact. Drivers are not getting any benefit from it.— Consumer at Lodhi Road CNG station
With the increase in CNG prices, it first went up by Rs 3 and today it has increased by around Rs 1 more. Poor people like us are badly affected. The fare for our vehicles has not increased, but CNG prices keep rising.— Taxi driver quoted to PTI
The Hearth Conversation Another angle on the story
Why does a conflict thousands of miles away matter to someone driving a taxi in Delhi?
Because global energy markets are interconnected. West Asia produces and controls significant oil supplies. When conflict disrupts those supplies, prices spike everywhere—including at the pump in Delhi.
But the oil companies say they're only covering a fraction of the global price increase. What does that mean?
It means the international price of fuel has risen much more sharply than these two hikes reflect. The companies are absorbing some of the cost themselves, but they can't absorb it forever. More increases are likely coming.
The taxi driver mentioned his fares haven't increased. Who decides those?
The government does. Fares are regulated. So when fuel costs jump but fares stay frozen, drivers lose money on every trip. They're squeezed between rising input costs and fixed revenue.
Is there any mechanism to adjust fares when fuel prices move?
There should be, in theory. But the government hasn't triggered it. That's a political decision—raising fares is unpopular with passengers and voters, even when it's economically necessary.
What happens if this continues—more fuel hikes without fare adjustments?
Drivers either absorb the losses and go broke slowly, or they stop working. Either way, the city's transportation system becomes less viable. It's a squeeze that eventually breaks something.