As fuel prices across major global economies continue to surge, India stands out as one of the few countries where retail diesel and petrol prices have remained unchanged. Data compiled by Kotak highlights the sharp contrast between India and both advanced and emerging markets, where consumers have faced sustained increases in fuel costs since January.
Diesel prices have risen steeply in several countries over the past months. The United Arab Emirates has seen diesel prices jump nearly 84%, while Australia and the United States recorded increases of over 65% and 62%, respectively. Canada, Pakistan, France, Sri Lanka and Britain have also posted sharp price hikes ranging from about 35% to 53%.
China, Brazil and Russia saw relatively modest increases, though prices still moved higher. Russia remains an exception within this group, with diesel prices rising marginally by just over 1%.
India, however, remains the most striking outlier. Diesel prices have stayed unchanged at Rs 87.6 per litre compared to January levels, marking zero percentage change over the period — the only country in the comparison set to record complete stability.
Diesel Price Hike
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A similar pattern is visible in petrol prices. Pakistan led the surge with a 44% rise, followed closely by the United States at 42% and the UAE at 36%. Canada, Sri Lanka and China witnessed increases of around 30–34%, while Australia, Britain, and France recorded relatively moderate gains.
Brazil and Russia again saw limited movement, with increases of just over 7% and under 1%, respectively. India once again stands apart. Retail petrol prices are unchanged at Rs 94.7 per litre versus January, reflecting no movement even as most countries experienced double-digit increases.
Petrol Price Hike
India's unchanged fuel prices underscore the extent of price smoothing through policy interventions, and public-sector oil marketing company pricing. While global fuel markets have remained volatile, Indian consumers have been insulated from immediate transmission of international price pressures. In a first since fuel price deregulation, Indian state-run oil marketing companies will pay refineries a discounted price for petrol, diesel, aviation turbine fuel (ATF) and kerosene to limit mounting losses from a self-imposed freeze on retail fuel prices, sources said.
Macquarie Group, in a report on 'India Fuel Retail', said, "At spot petrol-diesel pricing of $135-165 per barrel, we estimate India's oil marketing companies lose Rs 18 and Rs 35 per litre on petrol and diesel sales (respectively)." Every $10 per barrel increase in crude adds roughly Rs 6 per litre to marketing losses, the report said.
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