Petrol prices across South Asia show sharp differences as countries struggle with the fallout of the ongoing Middle East conflict that has disrupted global oil supplies and pushed energy costs higher.
While India has managed to keep petrol and diesel prices unchanged for now, Pakistan has announced a steep increase in retail prices and Bangladesh is facing supply disruptions and rationing amid the crisis.
Petrol prices across India’s major cities
Despite rising global oil prices, officials have indicated that retail petrol and diesel prices in India are unlikely to rise as of now. Brent crude surged to nearly $120 per barrel earlier this week before falling back below $90, reported The Times of India.
In India, petrol prices on March 10 range from Rs 94.77 per litre in Delhi to more than Rs 105 in some metro cities. Current petrol prices stand at Rs 103.50 per litre in Mumbai, Rs 105.45 in Kolkata and Rs 101.23 in Chennai.
Diesel prices are lower, ranging from Rs 87.67 per litre in Delhi to Rs 92.39 in Chennai.
Fuel prices in India vary significantly across states due to differences in value-added tax (VAT), transportation costs and local levies. Petrol and diesel are not included under the Goods and Services Tax (GST), which means state taxes largely determine the final retail price.
India, the world’s third-largest importer and consumer of oil, depends on imports for nearly 90 per cent of its crude requirements and more than half of its liquefied natural gas needs.
According to the report, the country currently holds more than 250 million barrels of crude and refined petroleum products, providing a buffer of roughly seven to eight weeks of supply.
To manage the situation, India has stepped up purchases of Russian crude.
Pakistan sees sharp fuel price hike
Pakistan has faced a steep rise in fuel costs, with the government announcing a significant increase in petrol and diesel prices due to surging global oil rates.
Petrol prices in the country were raised by 55 Pakistani rupees to 321.17 rupees per litre, while high-speed diesel rose to 335.86 rupees per litre, Reuters reported.
Petroleum minister Ali Pervaiz Malik said the government had little choice but to pass on the increase to consumers.
“We have taken this decision under compulsion because of a sharp surge in petroleum prices globally,” Malik said in a televised message, according to Reuters.
The price hike triggered panic buying at fuel stations in cities such as Lahore and Karachi, with long queues reported outside petrol pumps.
Pakistan relies heavily on oil imports from Saudi Arabia and the United Arab Emirates, with most shipments passing through the Strait of Hormuz.
Prime Minister Shehbaz Sharif has warned against fuel hoarding and said strict action would be taken against violators.
Bangladesh grapples with shortages and rationing
Bangladesh, which imports around 95 per cent of its energy needs, has been facing supply disruptions after the conflict disrupted oil shipments from the Middle East.
The country currently sells petrol at around 116 Bangladeshi taka per litre, while diesel is priced at about 100 taka per litre, with prices largely unchanged since February.
However, authorities have introduced fuel rationing and restrictions on diesel sales to manage supplies, Reuters reported.
Officials say the country has secured enough diesel to meet about one month of demand, while arrangements are being made to cover another month.
Bangladesh Petroleum Corporation has begun receiving diesel from several sources, including China and India
According to PTI, an initial supply of 5,000 tonnes of diesel has started arriving from India through the Bangladesh-India Friendship Pipeline from Numaligarh Refinery in Assam.
The pipeline, which connects Siliguri in India to Parbatipur in Bangladesh, has the capacity to transport about 200,000 tonnes of diesel annually.
The crisis has already begun affecting industries. Garment manufacturers have reported diesel shortages that are making it difficult to operate backup generators during power cuts.
Global conflict pushes energy markets into uncertainty
The fuel challenges across South Asia come as the ongoing conflict involving the United States, Israel and Iran disrupts shipping routes and oil exports from the Gulf.
Iran has warned that it could block oil shipments from the region, raising fears about supplies passing through the Strait of Hormuz, through which roughly 20 per cent of the world’s traded oil flows.
Global oil prices remain volatile, with Brent crude still trading about 20 per cent higher than before the conflict began, according to AFP.
The situation has left governments across the region scrambling to secure alternative fuel supplies and shield consumers from the worst impact of the energy shock.
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