The report showed that petrol is cheaper in India than in other countries, but it's more expensive in other countries.
The rising fuel prices in India have led to a debate on which government, state or central should lower their taxes. The global price of crude oil is the main reason for the rise in fuel prices.
The cost of crude oil has gone up due to a stronger dollar. The rising fuel prices in India have led to a debate on which government, state or central should lower their taxes. The global price of crude oil is the main reason for the rise in fuel prices.
The petrol price in India is 42nd out of 106 countries with per capita income. There are over 50 countries where the price is higher. India is not an outlier and this should provide some comfort. It said the median price was around 1.22 a liter.
India's fuel prices are comparable to those in Australia, Turkey, and South Korea. It's lower than in Hong Kong, Germany, Italy, the Netherlands, Greece, France, Portugal and Norway.
In comparison to other countries, prices in India are higher. Major oil producers have lower prices.
India's petrol price is not out of place. The per capita income in India is lower than it is in other countries.
The report said that the economic pain caused is much higher for countries with low per capita income as its direct and indirect effect on inflation is higher which in turn impacts the lower-income groups the most.
The Philippines has a comparable petrol price but has a higher per capita income than India. Lower per capita income countries like Bangladesh, Nepal, Pakistan, and Venezuela have lower petrol prices than India.
The report argued that there is still a strong case for the government to consider lowering the taxes on fuel.
India is the third biggest oil consuming nation. Retail fuel prices are at import parity rates because it imports 85 per cent of its oil needs.
The cost of producing petrol, diesel and other products went up in India because of the global surge in energy prices. They raised petrol and diesel prices by Rs 10 a liter in just over a fortnight, but stopped after the move was criticized and the opposition asked the government to cut taxes. The central government has resisted calls for a cut in excise duty and instead asked the state government to lower VAT to provide relief to common people.
The price of petrol and diesel in New Delhi is the same. Malaysia has the cheapest petrol at 47 cents a liter, while Hong Kong has the most expensive at 2.58 a liter.
In Germany, Italy, France, Israel, the United Kingdom and Singapore, it costs between 2.29 and 2.39 a gallon.
The price of petrol in India and Turkey is the same.
Japan has a lower fuel price at USD 1.25 a litre. China has an even lower rate at USD 1.21 a litre while it is still cheaper in the US at 98 cents per litre. India's neighbours have cheaper fuel - petrol in Bangladesh costs USD 1.05 a litre, 77 cents a litre in Pakistan and 67 cents a litre in Sri Lanka.You can download your money calendar here and keep your dates with your moneybox.
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