New Delhi, May 19 (IANS) India’s increase of Rs 3.91 per litre in the prices of petrol and diesel announced this week, works out to 4.4 per cent, which is the smallest hike of any major economy outside the directly subsidising Gulf producers such as Saudi Arabia, according to figures compiled by GlobalPetrolPrices.com.
An Indian Oil official pointed out that the Rs 3.91 increase, which restores only part of the rise in crude prices, has been undertaken after 76 days of complete absorption of costs by the public sector oil companies. In sharp contrast, the rest of the world has been adjusting prices for the rise in crude costs through increases ranging from 10 to 90 per cent in the retail prices of the two fuels.
The pass-through has been steepest in liberalised emerging markets directly exposed to West Asian supply and freight, where governments do not absorb volatility. Myanmar, Malaysia, Pakistan, and the United Arab Emirates have all seen petrol move up by more than half the pre-war price, with diesel rising even more sharply because of its closer link to global trade and freight. The Pakistani consumer is paying about 55 per cent more for petrol today than three months ago, the Malaysian about 56 per cent more, and the Emirati consumers about 52 per cent higher prices, the figures show.
In the advanced economies, the increases are smaller in percentage terms but still substantial. American petrol prices, which respond quickly to crude because federal and state excise loadings are modest, have risen by close to 45 per cent and diesel by 48 per cent. In Europe, where excise duties dampen the swing, the United Kingdom is up about 19 per cent on petrol and 34 per cent on diesel, Germany about 14 per cent on petrol and 20 per cent on diesel, and France about 21 per cent and 30 per cent respectively. In the case of Japan, South Korea, and Singapore, the hike in petrol prices has been held below 20 per cent. The price of diesel has risen considerably faster, with Singapore registering a 65 per cent jump.
In India’s case, the Rs 3.91 per litre increase has helped reduce the daily losses that the government-owned oil companies were incurring due to the skyrocketing cost of imported crude, from Rs 1,000 crore a day to Rs 750 crore. The retail increase in fuel prices has resulted in cutting losses by only 25 per cent, the Indian Oil official said.
“India is the visible exception as until 15th May 2026 the public sector oil marketing companies held petrol and diesel prices essentially unchanged from their 23rd February 2026 levels, absorbing the cost of crude at refinery gate and accumulating daily under-recoveries of around Rs 1,000 crore,” he added.
–IANS
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