Fuel prices have been constantly contributing to the high inflation number. Not only the conventional options like petrol and diesel but CNG prices too are inching closer to the Rs 100 level. In fact, prices have almost doubled in the past one year to Rs 86 from Rs 30+ levels in last July.
Petrol prices continue to be over the Rs 100 mark after having crossed the psychologically important level in May 2021. The price of diesel too is steadily catching up with the price of petrol, with the difference now coming down to just Rs 13, from Rs 20-plus difference in 2011.
Meanwhile, the current CNG price is Rs 86/kg in Mumbai after the recent Rs 6/kg hike introduced by Mahanagar Gas last week. The extent of the hike can properly put in perspective if you compare the price around the same time last year. The price of CNG per kg in July 2021 was Rs 49.40 in Mumbai.
The price hike has been blamed on the ongoing geo-political situation led by the Russia-Ukraine conflict, which has led to European countries buying more gas from West Asian countries. India too relies on the Gulf to purchase gas.
What’s hurting the common man most as a result of the CNG price is that the goods transportation in the city is mostly done via small commercial vehicles (SCVs) which primarily run on CNG. This has further pushed up the cost of transportation which has had a cascading effect on the price of household items.
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