India Records Lowest Fuel Price Hike Among Major Economies Amid Global Crude Surge

New Delhi, May 2026 : India’s recent increase of Rs 3.91 per litre in petrol and diesel prices is the smallest among major economies facing a global surge in crude oil prices, according to data compiled by GlobalPetrolPrices.com.

The increase, announced this week, amounts to approximately 4.4 per cent and comes after public sector oil marketing companies absorbed rising crude oil costs for more than two months without passing the burden on to consumers. Officials said the hike restores only a small portion of the increase in global crude prices and remains significantly lower compared to fuel price revisions witnessed across many parts of the world.

An Indian Oil official stated that government-owned oil companies had kept petrol and diesel prices virtually unchanged since February 23, 2026, despite sharp increases in international crude oil prices. During this period, oil companies reportedly absorbed substantial under-recoveries at the refinery level, resulting in losses estimated at nearly Rs 1,000 crore per day.

The recent revision has reduced those daily losses to around Rs 750 crore, cutting the financial burden by only about 25 per cent, the official said.

“India is the visible exception as until May 15, 2026, the public sector oil marketing companies held petrol and diesel prices essentially unchanged from their February 23, 2026 levels, absorbing the cost of crude at refinery gate and accumulating daily under-recoveries of around Rs 1,000 crore,” the official added.

Globally, however, consumers have faced much steeper increases in fuel prices due to governments passing on the rise in crude oil costs directly to the market. In many countries, retail fuel prices have risen between 10 and 90 per cent over the past three months.

The sharpest increases have been recorded in liberalised emerging economies heavily dependent on West Asian crude supplies and freight-linked imports. Countries such as Myanmar, Malaysia, Pakistan, and the United Arab Emirates have witnessed fuel price increases exceeding 50 per cent compared to pre-war levels.

According to the data, petrol prices in Pakistan have risen by around 55 per cent over the last three months, while Malaysian consumers are paying approximately 56 per cent more. In the UAE, petrol prices have increased by nearly 52 per cent. Diesel prices in these countries have risen even more sharply because of their direct link to international freight and transport costs.

In developed economies, fuel price increases have been relatively moderate in percentage terms but remain substantial. In the United States, where fuel prices react quickly to changes in crude oil due to lower tax components, petrol prices have climbed by nearly 45 per cent and diesel by 48 per cent.

European countries have also experienced notable increases. Petrol prices in the United Kingdom have risen by around 19 per cent and diesel by 34 per cent, while Germany recorded increases of approximately 14 per cent for petrol and 20 per cent for diesel. In France, petrol prices rose by around 21 per cent and diesel by 30 per cent.

Asian economies such as Japan, South Korea, and Singapore managed to keep petrol price increases below 20 per cent. However, diesel prices in Singapore surged significantly, recording an increase of nearly 65 per cent.

Officials said India’s restrained increase reflects the government’s effort to shield consumers from the full impact of global crude volatility while balancing the financial health of public sector oil companies.

Team Maverick.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)