Fuel prices are rising globally, but not in India. Why?

#Fuel Prices Are Rising Globally… But Not in #India. Why?
Even though prices were officially deregulated years ago, the reality is quite different, especially when Public Sector Undertakings (PSUs) still dominate retail supply.

So what’s happening behind the scenes?
The government has effectively created a buffer for retail consumers.
By maintaining high fuel #taxes over the years, consumers never fully benefited when #CrudeOil prices were low!
That “missed benefit” now acts as a cushion during price spikes!
Oil marketing companies (OMCs) often absorb short-term volatility.
Another major reason is that state #elections are around the corner, a price hike would be politically risky!

But the pressure is showing elsewhere…
- Premium fuels have already seen a ₹2–3/litre increase
- Bulk diesel prices for industries have surged by ~₹22/litre
So while retail consumers are protected directly, businesses are quietly bearing the brunt. The Common man would feel the pinch soon, though in an indirect manner!

Another interesting aspect of the current scenario is what Private players will do.
- Absorb margin pressure and stay competitive?
- Or increase prices and risk losing market share?
Last time this happened:
- One player simply stopped supplying. “No Petrol” was hanging around most of the pumps!
- Another raised prices and lost volumes!

Also, a quick trivia 👇
Fuel prices vary across states not only because of logistics but also because state governments levy significant taxes.
The central government’s excise duty is uniform, but state taxes differ widely, hence the price variation.

To summarize, India’s fuel pricing may be “deregulated” on paper, but in reality, it’s still a carefully managed balancing act between economics and politics. Private players would be squeezed, and it would be interesting to see what action they take next.

If crude stays elevated, the buffer would run out, and #household #budgets would need to be reworked!