Petrol and diesel prices were hiked by ₹3 per litre each on Friday, marking the first increase in more than four years, as state-run fuel retailers passed on part of the hit from surging global crude prices triggered by the Iran war. Meanwhile, CNG prices in cities like Delhi and Mumbai were raised by ₹2 per kg.
Global crude oil prices have surged more than 50 per cent since US-Israeli strikes on Iran on February 28 and Tehran’s subsequent retaliation disrupted energy flows through the Strait of Hormuz, a key artery for global oil shipments.
How much you pay for fuel right now?
Petrol price in the national capital has been increased to ₹97.77 per litre from ₹94.77 while diesel now costs ₹90.67 as against ₹87.67 per litre previously, industry sources said.
Rates vary across states due to differences in value-added tax.
CNG in Delhi now costs ₹79.09 per kg and in Mumbai it costs ₹84. However, prices of both natural gas piped into household kitchens for cooking, called piped natural gas, as well as domestic cooking gas LPG remained unchanged.
Live closer to office or save on rent?
The rise in fuel prices has reignited an old financial debate: is it more cost-effective to live closer to the office and pay higher rent while saving on travel costs, or stay farther away where rents are cheaper but commuting expenses are higher? In both cases, the assumption is that the individual lives in a rented home.
Let’s take the example of Sidharth and Varun to understand this
Scenario A: Sidharth lives in Defence Colony and commutes to his office in Barakhamba, a distance of around 8 km that takes roughly 18 minutes by car from his home.
Rent + Commute: He pays ₹70,000 as rent for a 1 BHK apartment (as per Magicbricks, the rent in this area for a 1 BHK apartment ranges between ₹ 65,000 to R ₹ 1 lakh). Meanwhile, he drives a hatchback that delivers a mileage of around 16 km per litre. Based on his daily commute, he consumes roughly 1 litre of petrol a day, translating to nearly 22 litres a month solely for office travel. At the current petrol price of ₹97.77 per litre, his monthly commuting expense comes to around ₹2,150.
Total cost: ₹72,150
Scenario B: Varun stays in Gaur City, Greater Noida, and travels nearly 28 km every day to reach his office in Barakhamba.
Rent + Commute: Varun pays around ₹17,000 in monthly rent for a 1 BHK apartment in Gaur City, Greater Noida,( where rents typically range between ₹16,000 and ₹18,000, according to Magicbricks). He also drives a hatchback that gives an average mileage of 16 km per litre. With a daily round-trip commute of 56 km to Barakhamba, he uses nearly 3.5 litres of petrol every day, adding up to around 77 litres a month just for office travel. At the current petrol price of ₹97.77 per litre, his monthly fuel expense comes to roughly ₹7,530.
Total cost: ₹24,530
The Verdict
Despite higher fuel expenses, living farther from the office remains significantly cheaper overall due to lower rents. However,it means longer commute hours, higher stress, and reduced work-life balance. For Sidharth, it takes only 18 min to reach office, but for Varun it means over 1 hour of commute to reach the same destination.