Rising crude oil prices amid ongoing tensions in West Asia have pushed fuel prices higher across the world. With crude prices crossing the $100-per-barrel mark and disruptions continuing in the Strait of Hormuz, governments and oil companies are facing mounting pressure to manage rising import costs and inflation.
India recently increased petrol and diesel prices after public sector oil marketing companies absorbed losses for several weeks. However, compared to many countries, India’s fuel price hikes have remained relatively moderate so far.
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Countries with market-linked fuel pricing systems have witnessed much sharper increases, especially those heavily dependent on imported crude oil and global shipping routes.
Fuel Price Increase Across Major Countries
| Country | Petrol Price Increase | Diesel Price Increase |
|---|---|---|
| Myanmar | 89.7% | 112.7% |
| Pakistan | 54.9% | 44.9% |
| United Arab Emirates | 52.4% | 86.1% |
| United States | 44.5% | 48.1% |
| China | 21.7% | 23.7% |
| France | 20.9% | 31% |
| Bangladesh | 16.7% | 15% |
| Japan | 9.7% | 11.2% |
| India | 4.2% | 4.4% |
Why Some Countries Saw Sharper Hikes
The steepest increases have been recorded in countries where domestic fuel prices are directly linked to international crude prices. Myanmar reported the sharpest jump, with diesel prices more than doubling compared to pre-conflict levels.
Pakistan and the United Arab Emirates also witnessed major increases due to their dependence on imported fuel and rapidly changing market conditions. In the United States, lower fuel taxes and dynamic pricing systems meant global crude movements were reflected quickly at retail fuel stations.
Diesel prices globally have risen faster than petrol in many countries because diesel is closely tied to freight transport, shipping and industrial operations.
India’s increase in petrol and diesel prices has been significantly lower than most major economies. Petrol prices have risen by around 4.2 per cent and diesel by 4.4 per cent since February 2026.
One reason for this is that Indian public sector oil marketing companies delayed passing on the full impact of rising crude oil costs to consumers. The government also reduced excise duty to cushion the impact on households and businesses.
According to estimates, oil companies were facing underrecoveries of nearly Rs 1,000 crore per day before fuel prices were revised.
What Could Happen Next?
Higher fuel prices also have a broader economic impact, increasing transportation and logistics costs and potentially pushing up inflation. Governments around the world are therefore balancing fiscal pressures with the need to protect
