Did you know LPG price in India is ‘highest’ in the world? – Times of India


In line with the buying energy of currencies of their home market, the per litre price of LPG in India is the world’s highest, the price of petrol the third-highest and diesel the world’s eighth costliest.
Buying energy vs nominal alternate
Worth comparisons on the nominal alternate fee (the speed at which currencies are traded within the worldwide market) conceal the truth that totally different currencies have totally different buying powers in their very own markets.
Additionally, earnings ranges are so extensively totally different throughout international locations {that a} litre of petrol is only a fraction of the each day earnings for a mean Westerner, one-fourth of each day earnings for a mean Indian and greater than the typical each day earnings in Burundi. In line with IMF, the PPP or worldwide greenback has averaged Rs 22.6 in 2022 and never Rs 75.84.
The maths
The worth of petrol at Rs 120 per litre interprets into $1.58 on the nominal alternate fee of Rs 75.84 per greenback. Nevertheless, a greenback can really purchase rather a lot much less within the American market than Rs 75.84 can in India. As an illustration, the typical worth of a kilo of potato was $1.94 in March within the US.
Transformed on the nominal alternate fee, this interprets into Rs 147, which might purchase greater than 7 kg of potatoes in March in India.
Now the pinch
Changing the worth of petrol in worldwide {dollars}, the comparable worth of petrol in India is 5.2 worldwide {dollars} per litre, the world’s third-highest after Sudan (Int $8) and Laos (Int $5.6).
For LPG, costs in India at Int $3.5 a litre are the world’s highest. India is adopted by Turkey, Fiji, Moldova and Ukraine. In Switzerland, France, Canada and the UK, LPG is priced at about Int $1 per litre. For diesel, the worth in India at Int $4.6 is the world’s eighth highest.


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