Petrol in India is More Expensive than 98 Other Countries

With average petrol prices touching historic highs, a plenty of Indians are worried over the cost of filling up. The price of petrol is sky rocketing because of the unrest in the Middle East and rising demand, especially from developing countries.

The purchasing power parity (PPP) is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates. In September the price of petrol per liter was highest in India based on PPP and retail prices in countries across the world shows that Indian prices are amongst the highest in the world at current exchange rates.

Indian government is increasing petrol and diesel price so oil companies will benefit and will suffer less loss on the other hand to reduce the price china is decreasing the oil price. Though we are not able to list out all the 98 here is the few other countries to give a vast idea of how cheap petrol is in other countries. Here are the comparisons with other countries fuel consumption with India based on PPP.

India

Though the pricing of petrol was freed from government controls in June last year, state-owned oil firms informally take directions from the oil ministry. It remains to be seen if the government will concede to the demand of oil companies just before the winter session of Parliament.

The petrol consumption in India dropped from 13.9 percent in 2009-10 to 10.8 percent in 2010-11 due to rising petrol prices. On the other hand consumption of diesel also declined from 8.8 percent in 2009-10 to 6.6 percent in 2010-11. The petrol price based on PPP is $3.95 and diesel price is $2.46.

China

With 1.3 billion people, the People's Republic of China is the world's most populous country and the second largest oil consumer, China has been undergoing a process of industrialization and is one of the fastest growing economies in the world.

China's economy since the 1970s has changed from a closed, centrally planned system to a more market-oriented one that plays a major role in the global economy, in 2010 China became the world's largest exporter. The petrol price based on PPP is $1.95 and diesel price is $1.83.

United Kingdom

The UK has the eleventh highest petrol price in Europe. The petrol price increases do have a substantial effect upon consumption a 10 percen

t increase in price could reduce consumption by as much as 7 percent. However, with rising incomes in the UK, and falling costs of purchasing and maintaining vehicles, the demand for fuel and road travel continues to grow. The petrol price based on PPP is $1.85 and diesel price is $1.91.

Brazil

Brazil is the 10th largest energy consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer.

Brazilian government slashed taxes on gasoline and diesel to offset price increases in a move that could help the central bank hit its 2011 inflation target. The so-called Cide tax will fall to $0.05 per liter. The petrol price based on PPP is $1.70 and diesel price is $1.23.

Japan

Earthquakes usually exact a limited toll on the global economy. The earthquake and tsunami that struck Japan in March 2011 was different, however, as energy markets across the globe felt the impact. Japan is a large player in world energy markets, including petroleum.

In accordance with the two oil crises of the 1970s, Japan made efforts to diversify to other forms of energy resources in order to increase energy security. Japan's domestic oil consumption dropped slightly, while the country's use of oil declined its consumption of nuclear power and LNG rose substantially. The petrol price based on PPP is $1.28 and diesel price is $1.09.

United States

The United States is the second largest energy consumer in terms of total use in 2010. The U.S. ranks seventh in energy consumption per-capita after Canada and a number of small countries. Energy consumption has increased at a faster rate than energy production over the last fifty years in the U.S. This difference is now largely met through imports.

U.S. consumes 20.8 million barrels of petroleum a day, of which 9 million barrels is motor gasoline. Transportation has the highest consumption rates, accounting for approximately 68.9 percent of the oil used in the United States. The petrol price based on PPP is $0.76 and diesel price is $0.84.

South Africa

South Africa relies heavily on imported crude oil. Domestic sources and available substitutes alone cannot satisfy the country's current demand, resulting in imported crude oil accounting for over 90 percent of South Africa's requirements.

South Africa consumed approximately 11.3 billion liters of petrol and 9.1 billion liters of diesel recent years, showing a 2.2 percent increase in petrol and a 6.6 percent decrease in diesel from the previous year. During 2008 there was a 4.2 percent decrease in petrol consumption and a 0.1 percent increase in diesel consumption from 2007. The petrol price based on PPP is $0.23 and diesel price is $0.10.