How does the latest price of petrol in India compare, with the prices prevailing in other countries of the world, would be worth probing, especially ,the prevailing highest and lowest petrol prices.
The more than 10% increase in the price of petrol by the Central Government, has raised the prices, across the country, to between Rs 77 and Rs 81 per litre, depending on local taxes. This is the highest price rise till date. Since the UPA 2 came to power in 2009, they have raised the price of petrol by a whooping 80 % over the mid 2009 level. Thisprice rise has started affecting the two wheeler owners also. It will also have a cascading effect on prices of commodities which have a significant transportation component in their pricing structure.
While the price in India is at record levels, it would be interesting to know the petrol prices in various other countries. A search on the internet, has given prices in some countries, but there may be some errors due to different qualities being compared or latest prices may not be available. However the prices are prevailing in 2012 and do indicate a trend which may not be at any significant variance.
Let us see the top ten countries where the petrol prices are the lowest. The petrol in Venezuela is priced at an unbelievable price of Rs 1.74 per litre(L) and the second cheapest petrol is in Saudi Arabia at Rs 6.96 per L, and ,it also has 20% of the oil resources of the world. The next country is Libya at Rs 7.83 per L and the fourth is Turkeministan at Rs 10.45 per L. Bahrain sells it at Rs 11.31 and Kuwait at Rs 12.18 followed by Qatar at Rs 13.15 per L. The eighth cheapest is in Egypt at Rs 16.53 per L. Both Oman and Algeria have priced petrol
Now let us see the top ten countries where petrol is the costiliest in the world. The tenth costliest petrol is available in Belgium at Rs 122.57 per L. In Eriteria and Sweden it is priced at Rs 123 and Rs 124 resp. In UK also it is priced at Rs 124 per L. In Denmark the price is Rs 125, in Greece Rs 126 and in Italy Rs 127 per L. In Holland and Turkey, it is priced at Rs 129 and Rs 141 per L. The costliest petrol is in Norway at Rs 143 per litre.
It is worth noting that in Norway on an average a person spends around 7.4% of his monthly income on buying the costliest petrol in the world whereas Eriterians have to spend as much as 61 % . Turks spend on an average 34 %, Greeks around 25% and Italians around 16% of their monthly income on petrol purchases.
So the oil rich countries can afford cheap petrol and affluent European countries can afford to pay high prices for petrol. We Indians are sandwiched in between. Some solace we can draw from the fact that petrol is Rs 106 per litre in Pakistan, Rs 75 in Nepal, and around Rs 62 in Sri Lanka.
With the rupee continuing its free fall against the dollar and government using petrol price, for cross subsidizing, artificially lower diesel and LPG prices, there are all chances that the prices of petrol may see another price increase sooner than late. Innovative measures need to be introduced in government schemes of revenue collection, so that petrol prices are kept under control and are stable for long periods of time. Also for sake of good economics reduce the subsidies and stop robbing Peter to pay Paul.In this process Peter has become Paul and Paul has remained Paul.