Pakistan vs India fuel battle exposes shocking difference in petrol, diesel prices
Although both countries depend heavily on imported oil, the speed and scale of fuel price increases have been very different.
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India has increased petrol and diesel prices for the first time in nearly four years, while Pakistan has revised fuel prices almost every week during the recent Middle East crisis.
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The comparison shows that Pakistan’s fuel market has reacted much more aggressively to global oil pressure than India’s.
India’s fuel price strategy remained slow and controlled
India’s state-run refiners recently increased petrol and diesel prices by around Rs3 per litre after Brent crude prices surged close to $110 per barrel. Petrol in New Delhi now costs Rs97.77 per litre, while diesel is priced at Rs90.67.
This was India’s first major fuel increase in almost four years despite crude oil prices rising sharply because of tensions linked to Iran and fears over disruption in the Strait of Hormuz. Analysts say Indian oil companies absorbed financial pressure for a long period before finally passing some burden to consumers.
Even after the latest increase, India’s fuel price hike remained relatively modest compared to the almost 50% jump in Brent crude prices since the conflict began. Experts believe India may still see gradual increases in coming months if crude oil remains above $90 to $100 per barrel.
India imports nearly 85% of its oil needs, making it highly exposed to global price shocks. However, the government appears to prefer gradual increases to avoid sudden inflation pressure on consumers and businesses.
Pakistan saw rapid and repeated fuel hikes
Pakistan’s fuel price trend has been much more volatile during the same period. The government recently raised petrol prices by Rs14.92 per litre and high-speed diesel by Rs15, pushing petrol to Rs414.78 per litre and diesel to Rs414.58.
Unlike India, Pakistan revised petroleum prices almost every Friday night during the crisis period. The government linked the changes to the global fuel crunch caused by the war involving Iran and fears surrounding the closure of the Strait of Hormuz.
The biggest shock came on April 2 when authorities announced unprecedented increases of 43% in petrol prices and 55% in diesel prices. The government argued that rising international crude oil costs made the increase unavoidable.
However, just one day later, Prime Minister Shehbaz Sharif reduced the petroleum levy by Rs80 per litre, bringing petrol prices down to around Rs378 per litre. A few days later, diesel prices were reduced by Rs135 per litre while petrol was cut by Rs12.
Despite these temporary relief measures, fuel prices in Pakistan continued moving upward. Last week, petrol prices increased by another Rs6.51 while diesel jumped by Rs19.39 before the latest increase of nearly Rs15 per litre.
Why Pakistan’s fuel prices are increasing faster
One major difference between the two countries is the pricing mechanism and economic stability. India’s larger economy and stronger foreign exchange reserves allow it to absorb some global oil shocks for longer periods.
Pakistan, on the other hand, faces constant pressure on foreign reserves, currency stability and import financing. As a result, even moderate increases in international crude oil prices quickly translate into higher local fuel prices.
Another factor is taxation and petroleum levies. Pakistan frequently adjusts levies and taxes to manage fiscal pressure, while India often spreads the impact over a longer period through controlled pricing policies.
Pakistan’s fuel prices are also revised more frequently, creating faster market reactions. India generally avoids sudden weekly changes and prefers delayed adjustments to reduce public backlash and inflation risks.
Impact on ordinary people
In both countries, rising petrol prices directly affect middle-class households, transport costs and inflation. Petrol is widely used in motorcycles, cars and rickshaws, while diesel powers heavy transport, generators and agricultural machinery.
However, the burden appears heavier in Pakistan because fuel prices are already extremely high compared to average incomes. Frequent increases also create uncertainty for businesses and transporters.
Economists warn that if global crude prices continue rising, both countries may face more inflation pressure in coming months. Pakistan may remain more vulnerable because of weaker economic conditions and dependence on imported energy.
A clear contrast in fuel price management
The comparison between Pakistan and India shows two very different fuel management strategies during an international oil crisis. India delayed price hikes for years and introduced only a small increase, while Pakistan responded with rapid and repeated revisions within weeks.
Both countries remain vulnerable to global crude oil shocks, but Pakistan’s fuel market has shown far greater instability. If tensions in the Middle East continue and Brent crude remains near $110 per barrel, fuel prices in both countries may continue rising, though Pakistan is likely to feel the pressure more quickly and more severely.
