Gasoline in India more expensive than USA, China, Pakistan, Sri Lanka
Gasoline in India more expensive than USA, China, Pakistan, Sri Lanka

Gasoline in India more expensive than USA, China, Pakistan, Sri Lanka

Gasoline in India is cheaper than in countries like Hong Kong, Germany and the UK, but more expensive than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a BOB Economics Research report showed.

Rising fuel prices in India have led to significant debate over which government, state or central government should lower their taxes to keep prices under control. The increase in fuel prices is primarily due to the fact that the global price of crude oil (raw material for the production of petrol and diesel) has risen. Additionally, a stronger dollar has increased the price of crude oil.

The report from the Bank of Baroda Economic Research put gas prices from 9 May in different countries together with incomes per capita. inhabitant.

Read | Wholesale inflation increases in April to a record high of 15.08%

“For a set of 106 countries for which data are available, the price in India is at $ 1.35 per liter number 42. Therefore, there are over 50 countries where the price is higher. This should provide some comfort, as “India in absolute numbers is not an outlier. The median price was around $ 1.22 per liter,” it said.

Fuel prices in India are on a par with those in Australia, Turkey and South Korea.

It is lower than Hong Kong, Finland, Germany, Italy, the Netherlands, Greece, France, Portugal and Norway, where it is over $ 2 per tonne. liters.

Among comparable countries (per capita), prices in India are higher than in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka and Venezuela. Countries that are major oil producers have much lower prices.

“India’s petrol price now does not look too much misplaced. But compared to per capita income, it can be seen that where prices are higher, per capita income is much higher than in India.

“Therefore, the economic pain caused is much higher for low-income countries per capita, as its direct and indirect effect on inflation is higher, which in turn affects the lower income groups the most,” the report said.

In the report, the Philippines has a comparable gasoline price, but has an income per capita. per capita higher than India with over 50 per cent. Countries with a lower income per capita per capita such as Kenya, Bangladesh, Nepal, Pakistan and Venezuela have much lower petrol prices and are therefore less affected than India.

“Therefore, there is still a strong argument that the government is considering lowering taxes on fuel to protect the interests of the population,” the report argued.

Also read | Reduce fuel tax to lower gasoline, diesel prices: CII

India is the world’s third largest oil consuming and importing nation. It imports 85 percent of its oil needs and therefore prices retail fuel at import parity rates.

With the global rise in energy prices, the cost of producing gasoline, diesel and other oil products also increased for oil companies in India. They raised petrol and diesel prices by 10 Rs per. liters in just over fourteen days beginning March 22, but pressed a pause button shortly after when the measure came under criticism and opposition parties asked the government to lower taxes instead.

The central government has so far opposed demands for a reduction in excise duty and has instead asked the state government to lower VAT or turnover tax to provide relief to ordinary people.

Gasoline in New Delhi currently costs Rs 105.41 per liter and diesel is priced at Rs 96.67 per liter.

Hong Kong has the most expensive gasoline at $ 2.58 per liter, while Malaysia has the cheapest at 47 cents per liter.

It costs $ 2.29 per liter in Germany, $ 2.28 per liter in Italy, $ 2.07 per liter in France, $ 1.96 per liter in Israel, $ 1.87 per liter in the UK and Singapore, 1 , $ 75 per liter in New Zealand and $ 1.36 per liter in Australia.

The price of gasoline in India and Turkey is the same at $ 1.35 per gallon.

Japan has a lower fuel price of $ 1.25 per liter. China has an even lower price of $ 1.21 per tonne. liters, while still being cheaper in the US at 98 cents per liter. liters.

India’s neighbors have cheaper fuel – petrol in Bangladesh costs $ 1.05 per liter, 77 cents per liter in Pakistan and 67 cents per liter in Sri Lanka.

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