LPG-Petrol-Diesel price hike: From LPG cylinders to petrol-diesel prices in India have reached the sky. If we look at the price of Liquefied Petroleum Gas (LPG) in the world, then LPG is getting the most expensive in India, in this case it is at number one. At the same time, India is at number three in the whole world where the price of petrol is highest while diesel is the eighth most expensive globally.
understand what is math
The ‘purchasing power’ of the currency is a factor in other countries leading to the rise in fuel prices. That is, a price comparison on the nominal exchange rate (the rate at which currencies are traded in the international market) does not show that different currencies have different purchasing power in their markets. Explain that how much and what goods can be bought in their domestic market with a currency or currency, it is its ‘purchasing power’ which is different in different countries’ currency purchasing power. The purchasing power of money changes in the international market. As the level of income differs from country to country. A liter of petrol can account for 1/4 of the daily income for an average Indian. At the same time, in Burundi it is only a fraction of the average daily income.
Also read- Rakesh Jhunjhunwala made a big bet on this stock, increased stake, the share is worth Rs 247
understand this way
For example, the price of petrol at Rs 120 per liter is equal to $1.58 at the nominal exchange rate of Rs 75.84 per dollar. But a dollar in the US market can buy much less than Rs 75.84 in India. To understand this better, the average price of a kilo of potatoes in the US in March was $1.94, which when converted at the nominal exchange rate translates to Rs 147. This amount was able to buy over 7 kg of potatoes in India in March.
Therefore, economists are using PPP dollars or international dollars to compare domestic prices in different countries. It looks at how much each currency can buy in its market. According to the International Monetary Fund, the PPP or the international dollar has averaged Rs 22.6 in 2022.
lpg prices
LPG prices are available for 54 countries and India’s price is $3.5 per liter, the highest in the world. India is followed by Turkey, Fiji, Moldova and Ukraine. Meanwhile, in countries like Switzerland, France, Canada and the UK, LPG costs around a dollar a liter.
petrol prices
When the price of petrol is converted to international dollars, the comparable price in India comes to 5.2 international dollars per liter, which is the third highest among 157 countries in the world after Sudan (int 8) and Laos (int 5.6). Is.
Also read- Amazing 19 paise stock, in 12 months only 1 lakh of investors made 25 lakh rupees
diesel prices
Data is available for 156 countries for Diesel. In India, the price int is at the highest at $4.68. Number one on this list is Sudan, where the price is $7.7. It is followed by Albania, Turkey, Myanmar, Georgia, Bhutan and Laos.