New Delhi, May 25 (IANS). The impact of the ongoing crisis in the Middle East is now being seen on the prices of petrol and diesel in the country. However, the increase in fuel prices in India remains the lowest among oil importing countries.
Due to the closure of the Strait of Hormuz, strategically important for crude oil exports to the Middle East, since February 28, domestic oil companies have increased fuel prices by about 7.5 percent four times – on May 15, 19, 23 and 25. At the same time, in the rest of the world, fuel prices have increased by 10 to 90 percent.
Due to the four-time increase in fuel prices in India, the price of petrol in New Delhi has increased by Rs 7.35 per liter to Rs 102.12 per liter, which was earlier Rs 94.77 per liter. At the same time, the price of diesel has increased by Rs 7.53 per liter to Rs 95.20 per liter, which was earlier Rs 87.67 per liter.
The retail price of petrol is more than Rs 150 per liter in the world’s major developed economies and more than Rs 180 per liter in most countries; The average price of petrol in 27 countries of the European Union is Rs 179 and the price of diesel is Rs 184.
Despite low incomes in India’s two big neighbors – Pakistan and Nepal – petrol prices have soared well above Rs 135 per litre. In Sri Lanka, Myanmar and Philippines this price is above Rs 130 per liter.
Only two economies (UAE and Malaysia) or the US that provide direct subsidies are keeping the retail price of petrol consistently lower than India. Where tax on fuel is structurally low.
Petrol and diesel prices in India are at or below those in most developing countries and about half the European pump price, while even during the current economic crisis India has experienced lower increases than non-subsidized countries.
All other major importing economies have passed on the cost to their consumers and in many cases have doubled petrol prices in 48 months, but India has not.
–IANS
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