Mumbai, May 25: The ongoing crisis in the Middle East is now impacting fuel prices in India. However, the increase in petrol and diesel prices in the country remains among the lowest in oil-importing nations.
Since the closure of the strategically important Strait of Hormuz for crude oil exports on February 28, domestic oil companies have raised fuel prices four times—on May 15, 19, 23, and 25—resulting in an approximate increase of 7.5 percent. In contrast, fuel prices globally have surged between 10 to 90 percent.
As a result of these four price hikes, petrol in Mumbai has risen by ₹7.35 per litre to ₹102.12, up from ₹94.77. Diesel prices have also increased by ₹7.53 per litre, now standing at ₹95.20, compared to ₹87.67 previously.
In major developed economies, retail petrol prices exceed ₹150 per litre, with many countries seeing prices above ₹180 per litre. The average petrol price in the 27 European Union countries is ₹179, while diesel averages ₹184.
India’s two major neighboring countries, Pakistan and Nepal, have petrol prices significantly above ₹135 per litre despite lower income levels. Similarly, prices in Sri Lanka, Myanmar, and the Philippines have surpassed ₹130 per litre.
Only two economies, the UAE and Malaysia, along with the United States, consistently maintain lower retail petrol prices compared to India, benefiting from a structurally lower tax on fuel.
In India, petrol and diesel prices are comparable to or lower than most developing countries and are nearly half of the current European pump prices. Notably, during the ongoing economic crisis, India has experienced less price increase compared to non-subsidizing countries.
Other major importing economies have passed the cost burden onto consumers, with petrol prices doubling in many instances over the past 48 months, a situation India has managed to avoid.