India’s domestic fuel prices have been rising, adding to the country’s inflation.
As the energy prices in international markets are growing by the day, India’s domestic fuel prices are also increasing, adding to the country’s inflation. India has seen a jump of around 6% in fuel prices from 22 February 2022, since the start of the war between Russia and Ukraine till 28 March, while fuel prices in Pakistan have dropped by 7% in the same period.
The war has pushed crude oil prices for Brent, OPEC basket and WTI up across the globe by around 14% and the fuel crisis is expected to grow more due to disruption in supply of crude oil. In Delhi, a litre of petrol was priced at Rs 95.41 and diesel rates stood at Rs 86.67 per litre before the start of the war. After a month, petrol is retailing at Rs 102 and diesel is selling at Rs 92.27—an increase of about Rs 7 on petrol and around Rs 5 on diesel as on 28 March.
According to the data from Petroleum Planning and Analysis Cell under the Petroleum ministry, for Rs 100 worth of petrol in Delhi, the consumer pays Rs 45 in taxes, which includes a state tax of Rs 16.3 and a central tax of Rs 29.
In the same time, Pakistan saw a plunge in fuel prices due to an additional subsidy of 10 Pakistani rupees (4.4 Indian rupees) by the government. Before the war, petrol prices in Pakistan were retailing at 66, which is now selling at 62 Indian rupees and diesel prices were at 64 Indian rupees which have now dropped to Rs 60.
Presently, Turkey and India have around the same petrol prices in their respective countries at around Rs 102 per litre. Its fellow Quad countries, Japanese consumers pay Rs 104 rupees on petrol. Australian consumers pay Rs 117 and American consumers pay Rs 93 on petrol.
On 24 February, Russia started its offensive in Ukraine and disrupted the international crude oil market, creating shortage in oil and the west’s sanctions on Russia further exacerbated crude oil prices.
Germany, which is Europe’s largest importer of Russian fuel, saw a jump in its fuel prices from Rs 150 per litre to Rs 172, an increase of around 15%. The crude oil prices before the war dating 22 February 2022 stood at 97.94, 96.84, and 92.35 dollars for the OPEC basket, Brent and WTI respectively. Now, after a month and a week, the same prices have reached 113.39, 112.48, and 105.96 dollars for the OPEC basket, Brent and WTI respectively as of 28 March 2022.
Currently, the countries with the highest fuel prices in the world are Morocco, the Netherlands and Hong Kong with fuel prices having risen to Rs 189, Rs 191 and Rs 219 respectively. As of 28 March, oil-producing countries Venezuela, Libya and Iran have the lowest fuel prices in the world amounting to Rs 1.90, Rs 2.40, and Rs 3.90 respectively. To put it in comparison, Indian consumers pay 50 times more for petrol than Venezuelans pay, the reason being India imports 85% of its crude oil in the ever-volatile international crude oil market at international prices.
To measure the volatility, in the fiscal year 2021-2022, India saw its current import bill almost doubled to more than $100 billion from last year, according to data from the oil ministry’s Petroleum Planning & Analysis Cell (PPAC). In the last fiscal year of 2020-2021, India had spent $62.2 billion on import of crude oil, around $40 billion lesser.
Moreover, Israeli consumers pay Rs 171 on petrol, Ukrainian consumers Rs 88, Russian consumers Rs 41, Syrian Rs 24, Srilankan Rs 76, French Rs 165, Afghanistanis Rs 77.