US-Iran war: Torrent Gas hikes CNG price by ₹2.50/kg
What's the story
Torrent Gas has hiked the price of compressed natural gas (CNG) by ₹2.50 per kg, according to PTI. The move has raised concerns among residents over rising fuel costs. Some locals said the increase would add to their daily expenses, while auto-rickshaw drivers flagged pressure on their earnings due to shrinking margins.
Wider trend
Rising fuel costs
The CNG price hike is part of a wider increase in fuel costs. Commercial LPG cylinder prices were also hiked from April 1 in major cities, along with aviation turbine fuel (ATF) rates. These changes are driven by global energy market pressures and rising input costs, affecting various sectors from transport to hospitality.
Market impact
Global factors affecting fuel prices
The rise in fuel prices is also influenced by global factors, particularly rising geopolitical tensions in West Asia and disruptions in crude oil supply routes such as the Strait of Hormuz. The increase in energy costs has also led to a rise in aviation turbine fuel (ATF) prices, affecting airlines and airfares.
Impact on transport
Auto-rickshaw drivers express concerns
The CNG price hike has raised concerns among auto-rickshaw drivers and small transport operators who rely on CNG as their primary fuel. While fares have not been officially revised yet, commuters fear that continued fuel price increases could soon translate into higher travel costs. For daily passengers, even a small hike could disrupt monthly budgets.
Retail response
Private retailers raise petrol, diesel prices
The CNG price hike comes amid a wider trend of fuel price increases by private retailers. Shell India recently raised petrol and diesel prices on April 1, following a similar move by Nayara Energy. In Bengaluru, Shell's petrol prices have risen sharply, with the standard variant now at ₹119.85 per liter and the Power variant at ₹129.85 per liter. Prices vary across cities depending on local taxes.
Market stability
State-owned fuel retailers maintain prices
Meanwhile, state-owned fuel retailers, who control nearly 90% of the market, have maintained prices despite rising costs. In Delhi, petrol continues to be sold at ₹94.77 per liter and diesel at ₹87.67 per liter at their pumps. However, with both CNG and conventional fuel prices seeing upward pressure, concerns are growing over the affordability of daily transport for commuters across India.