New Delhi, April 21: Fuel prices in India have remained unchanged despite a sharp global surge triggered by escalating tensions in West Asia and rising crude oil prices following the closure of the Strait of Hormuz, highlighting a widening gap between domestic and international markets.
Data compiled by Kotak shows that while several countries have witnessed steep increases in fuel prices this year, Indian retail prices for petrol and diesel have remained stable. Reports indicate that global consumers are facing significant cost pressures as geopolitical uncertainties disrupt supply chains and push up crude oil rates.
Diesel prices have risen sharply across multiple countries in recent months. The United Arab Emirates recorded an increase of around 85 per cent, while Australia and the United States saw hikes of over 65 per cent and 62 per cent, respectively. Other countries, including Canada, Pakistan, France, Sri Lanka and Britain, reported increases ranging between 35 per cent and 53 per cent.
In contrast, India’s diesel prices have held steady at Rs 87.6 per litre compared to January levels, reflecting no increase despite global volatility linked to US-Iran tensions. Countries such as China and Brazil reported relatively moderate increases, while Russia recorded only a marginal rise of just over 1 per cent.
A similar pattern is visible in petrol prices globally. Pakistan registered the highest increase at 44 per cent, followed by the United States at 42 per cent and the UAE at 36 per cent. Canada, Sri Lanka and China saw increases of up to 34 per cent, while Australia, Britain and France recorded comparatively moderate gains. Brazil and Russia again remained at the lower end, with increases of over 7 per cent and around 1 per cent, respectively.
In India, petrol prices have remained unchanged at Rs 94.7 per litre compared to January levels, indicating no burden passed on to consumers so far.
The price stability reflects policy interventions and pricing strategies by public-sector oil marketing companies, which have insulated domestic consumers from immediate global price shocks. However, reports suggest that this has come at a cost to these companies.
For the first time since fuel price deregulation, state-run oil marketing companies are reportedly purchasing petroleum products such as petrol, diesel, aviation turbine fuel and kerosene from refineries at discounted rates to offset mounting losses caused by the continued freeze in retail prices.
According to a report by Macquarie, at spot pricing levels of $135–165 per barrel, oil marketing companies in India are incurring losses of Rs 18 per litre on petrol and Rs 35 per litre on diesel. The report further states that every $10 per barrel increase in crude oil prices adds approximately Rs 6 per litre to these losses.
Despite global market volatility, India’s fuel pricing remains stable, even as cost pressures build within the system.
