Fuel prices across major metro cities surged once again on June 4, after a two-day lull. Petrol prices in Delhi jumped to Rs 94.76 per litre, a 27 paise increase from the previous day and Diesel scaled to Rs 85.66 per litre, an increase of 28 paise.
The price of petrol remained above the Rs 100-mark in Mumbai and stood at Rs. 100.98 per litre. Diesel was priced at Rs 92.99 per litre, according to the Indian Oil Corporation (IOCL).
Petrol prices in the country have been the talk of the town given the increase in costs with several cities breaching the 100 mark in recent months.
Fuel prices vary across states depending on local taxation such as value-added tax (VAT) and factors like freight charges. Rajasthan reportedly levies the highest VAT on petrol in the country, followed by Madhya Pradesh and Maharashtra.
Let’s take a look at how India fares among fellow economies on petrol prices:
The average price of gasoline or petrol around the world is US$ 1.18 or Rs 85.36 per litre as on May 31, 20201, according to GlobalPetrolPrices.com.
Petrol prices in India were recorded at US$ 1.33 (Rs 96.43) per litre on May 31, above the global average, as per the website. In terms of purchasing power parity (PPP), the price of a litre of petrol in India is considerably higher compared to fellow economies.
Purchasing power parity (PPPs) is defined as the rate of currency conversion that equalises the purchasing power of different currencies by eliminating the differences in price levels between countries. It is measured in terms of national currency per US dollar.
While the cost of a litre of petrol in terms of USD is higher in countries like Japan, South Korea, Germany and the UK. Petrol in Hong Kong is valued the most at USD 2.49 per litre, among countries listed on GlobalPetrolPrices.com .
Whereas, prices are comparatively cheaper in Canada, South Africa, China, Brazil and the USA.
“Richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices,” the website states. However, “one notable exception is the U.S. which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for gasoline,” it notes.