India has raised petrol and diesel prices by Rs 3.91 per litre, marking a 4.4% increase, the smallest among major economies outside Gulf producers like Saudi Arabia. This adjustment comes after 76 days of public sector oil companies absorbing costs. In contrast, other countries have seen price hikes ranging from 10 to 90% due to rising crude costs.
The steepest price increases have been observed in liberalized emerging markets dependent on West Asian supply and freight. Countries like Myanmar, Malaysia, Pakistan, and the UAE have witnessed significant petrol and diesel price hikes. For instance, Pakistani consumers are paying 55% more for petrol compared to three months ago.
In advanced economies, the percentage increases are smaller but still substantial. The US has experienced a nearly 45% rise in petrol prices and a 48% increase in diesel prices. European countries like the UK, Germany, and France have also seen notable price hikes. Japan, South Korea, and Singapore have managed to keep petrol price increases below 20%, with diesel prices rising faster.
The Rs 3.91 per litre increase in India has helped reduce daily losses incurred by government-owned oil companies due to high crude oil costs. This increase has cut losses by 25%, from Rs 1,000 crore to Rs 750 crore per day. Until recently, Indian oil marketing companies had kept petrol and diesel prices unchanged, leading to significant under-recoveries.
