India has emerged as one of the few major economies to shield consumers from the full impact of the global oil shock triggered by the closure of the Strait of Hormuz, absorbing rising crude costs for 76 days before allowing a phased increase of under ₹5 per litre in petrol and diesel prices.The cumulative increase across three oil marketing company (OMC) revisions on May 15, May 19 and May 23 stood at ₹4.74 per litre for petrol and ₹4.82 per litre for diesel — translating into a roughly 5% increase on a base price of around ₹95 per litre. Sources said this was likely “the smallest material upward movement” among major economies outside the Gulf region.
In contrast, several economies have witnessed fuel price spikes ranging from 20% to over 80% following the Hormuz disruption.
For instance, the EU-27 average petrol price has risen to around ₹179 per litre, while prices in the UK, France and Germany remain well above ₹190 per litre. India’s average petrol prices after the May 23 revisions range between ₹95 and ₹118 per litre, depending on state taxes.Also Read: No fuel shortage, says IOC amid panic buying at pumpsAt the peak of the crude spike, the government was estimated to be absorbing losses of around ₹24 per litre on petrol and ₹30 per litre on diesel. According to sources, the May 15 and May 19 price revisions are likely to have reduced OMC losses by around 25%, although substantial under-recoveries continue to be absorbed.Also Read: Petrol, diesel prices hiked for third time in May: Check latest rates
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