Petrol and diesel prices hiked by Rs 3; inflation concerns grow as CNG rates also rise amid global energy crisis

Residents in Delhi voiced strong concerns over rising inflation and increasing household expenses after petrol and diesel prices were hiked by Rs 3 per litre across the country on May 15 amid continuing tensions in West Asia and disruptions linked to the Strait of Hormuz crisis.

Oil companies announced an increase of around Rs 3 per litre in both petrol and diesel prices, pushing fuel rates higher across major metro cities. Following the hike, petrol prices in Delhi rose from Rs 94.77 to Rs 97.77 per litre, while diesel prices climbed to Rs 90.67 per litre.

The latest revision comes amid volatility in global crude oil markets triggered by the ongoing conflict involving the United States, Israel and Iran, which has disrupted shipping movement through the Strait of Hormuz — one of the world’s most critical oil transit routes.

Apart from petrol and diesel, compressed natural gas (CNG) prices were also increased by Rs 2 per kilogram in Delhi-NCR, taking the revised rate to Rs 79.09 per kg. Similar hikes were also reported in the Mumbai Metropolitan Region, where Mahanagar Gas Limited raised CNG prices to Rs 84 per kg.

The rise in CNG prices is expected to directly impact public transportation and daily commuters, as a large number of buses, taxis and autorickshaws in major cities now operate on CNG. Transport unions in some cities have already started demanding fare revisions following the increase in fuel costs.

At a fuel station in Dhaula Kuan, several consumers expressed frustration over the growing burden of inflation and transportation expenses.

“It is making a big difference. It should be cheaper. We are not even getting enough fare. Customers are not willing to pay that much fare either. Inflation is rising. CNG and petrol should be cheaper. The rates of CNG and petrol should come down, but inflation is increasing,” one consumer said.

Another commuter said even a small increase in fuel prices eventually affects the prices of essential commodities and services.

“Rs 2 increase will lead to many other price hikes. Some people will use the Rs 2 hike as an excuse to raise the prices of their goods by Rs 10. Rates will go up. The entire burden will fall on the public. Vehicles used for transporting goods will increase their transport charges,” the consumer stated.

Another resident said the fuel hike would further strain ordinary citizens already dealing with rising prices of daily necessities.

“Already inflation is high and now with the fuel price hike, I don’t know how we will manage. Rates of everything will increase now. The government should manage at some level,” the consumer said.

A commuter identified as Amrik Singh Bhatia linked the fuel price rise to the ongoing geopolitical situation in West Asia.

“Price of other commodities will also increase after the hike in petrol and diesel prices. Transportation cost will increase. There’s war going on… rates are increasing across the world. People here are also facing the brunt,” he said.

Officials stated that the fuel price revision is still significantly lower than the actual rise in international crude oil and gas prices, with the government absorbing part of the burden to avoid a sharper impact on consumers.

Meanwhile, the Centre has repeatedly assured citizens that there is no fuel shortage in the country despite disruptions in global energy supply chains. Oil Secretary Neeraj Mittal recently stated that India currently maintains around 60 days of fuel stocks and nearly 45 days of LPG inventories.

“There is no need to panic. There are sufficient supplies. There is no rationing in place. It’s not going to happen,” Mittal said during the CII Annual Business Summit.