NEW DELHI
While the world grapples with a massive energy crisis, India is standing firm. Despite rising crude oil prices and a tense situation in the Middle East, fuel prices in India have remained completely unchanged, even as other nations face staggering hikes of up to 85%.
New data reveals a sharp contrast between India and the rest of the world. In the UAE, diesel prices have nearly doubled, while Australia and the United States have seen jumps of over 60%. Closer to home, Pakistan has been hit by a 44% surge in petrol prices. In contrast, Indian consumers are still paying January rates, ₹94.7 per litre for petrol and ₹87.6 for diesel.
This price freeze is no accident. It is the result of deliberate government intervention and a unique strategy by public-sector oil companies. These companies are currently absorbing massive hits to protect the public’s wallet. According to experts, oil companies are losing an estimated ₹18 on every litre of petrol and ₹35 on every litre of diesel they sell at current international rates.
Essentially, while the global market is on a rollercoaster, the Indian government has built a shock absorber. By keeping prices steady, they are shielding families and businesses from the inflation that usually follows a fuel hike. However, analysts warn that every $10 increase in global oil prices adds roughly ₹6 per litre to these marketing losses, making the ongoing price freeze a challenging but vital balancing act for the nation’s economy.