[Abhikumar629]

Not in favour of high fuel price (beyond a certain limit which is enough to meet the development activities) but i'm sure this news would have given some respite to people actively benchmarking global fuel prices with that of India.

Globally, fuel price will cause a major destabilizing effect on various economies especially the smaller countries. Good for us that we are securing our energy requirement by importing lower priced Russian crude but again, is the government planning to pass some of the benefit of cheaper crude to the consumers?

[saket77]

Originally Posted by RedTerrano

Fair enough, but then how do you equalize, considering we (India) pays for crude in USD?

Point taken, but then crude prices or what India pays in USD to buy crude is hardly a reflection of the prices at pump.

[buzzy_boy]

As others have said, direct conversion to INR does not make sense.

My only grouse is that us masses have to pay exorbitant indirect taxes on fuel because no government can/want to enforce strict adherence to income tax by the business and the VIP class.

[SnS_12]

The diesel crisis in the US may get worse this summer with the potential of shortages and rationing on the East Coast, said billionaire refinery and fuel station owner John Catsimatidis.

“I wouldn’t be surprised to see diesel being rationed on the East Coast this summer,” Catsimatidis, CEO of United Refining Co., said in a phone interview. “Right now inventories are low and we may see a shortage in coming months.”

Consumers are already feeling the squeeze. Diesel prices have risen for the past 16 straight days and hit a new record of $5.553 a gallon Tuesday, according to the American Automobile Association. Gasoline prices rose to a new record of $4.404 a gallon.

The transportation industry and farmers who need diesels for farm equipment's are feeling the pinch of rising diesel costs.

Link: https://www.bloomberg.com/news/artic...t-coast-diesel

[PreludeSH]

Isnt the US using its own reserves or production to mitigate the prices and inventories ? I can understand prices to be still same as international since you got to make money when you can. But availability shouldn't be an issue in US.

[Apex1815]

GDP per capita of US = USD 76,027
GDP per capita of India = USD 2,342

GDP per capita in US is very high as compared to India. Therefore, Americans can easily afford this price of Fuel as their Purchasing power is way higher than India.

[JwanthGT]

Originally Posted by saket77

I don’t think currency value conversion is a proper benchmark to compare the prices of any commodity of two different countries unless one will be earning in one and paying in the other country. If one is earning and paying in the same country, then such a comparison is not relevant.

I'll have to agree with you that one, the income there is also more so it might balance out