It might sound surprising at first, but it is an absolute fact that petrol and diesel are currently being sold at lower prices in India than in Dubai. The UAE city of Dubai is globally renowned as a major hub for oil supply, yet its residents are forced to buy expensive fuel for their own vehicles. When compared against Indian rates, both petrol and diesel in Dubai are costlier. The difference in prices is substantial enough that filling up a car tank once can result in savings of hundreds of rupees. Although fuel prices vary across different states in India, a comparison with the national capital New Delhi reveals that fuel is considerably more expensive in Dubai.
Comparing Special 95 Petrol And Diesel Price Margins
While multiple grades of petrol are sold in Dubai, a direct comparison can be made using the grade that is also available in India. In Dubai, the price of Special 95 grade petrol stands at 4.28 dirhams per litre. Converting dirhams into Indian currency, where one dirham is roughly worth 25.80 rupees, brings the petrol price to 110.42 rupees per litre. In contrast, the same grade of petrol is retailed in New Delhi at 102.12 rupees per litre. This means that Special 95 grade petrol is more expensive by about 8 rupees a litre in Dubai compared to Delhi. For a vehicle with a 40-litre fuel tank, filling it up in Delhi saves approximately 320 rupees when measured against Dubai prices.
The Staggering Gap In Diesel Prices And Greater Savings
Leaving petrol aside, the situation regarding diesel is even more pronounced in Dubai, where only a single grade of diesel is available at 4.80 dirhams per litre. Translated into Indian currency, this price amounts to 123.84 rupees per litre. Looking at New Delhi, the retail price of diesel currently stands at 95.20 rupees per litre. Consequently, a single litre of diesel is cheaper by 28.50 rupees in the Indian capital. This implies that filling a 40-litre car tank results in a savings of approximately 1,140 rupees, which is a massive difference compared to the pricing in Delhi.
Reasons Behind High Fuel Costs In The UAE And India Advantage
Several factors contribute to expensive diesel in the UAE, with the primary impact stemming from reduced supply in the global market. The mere production of crude oil does not guarantee that refined fuel will be cheap within that country. Although crude is extracted in huge quantities in the UAE, the nation lacks adequate refining capacity. The UAE imports refined petroleum products from other nations, and current disruptions in supply chains have driven up diesel prices there. In comparison, India boasts massive refining capacities, and the government also maintains a controlled grip on retail fuel pricing.
Fuel Pricing Situations Across Other Gulf Nations
Examining other Gulf nations reveals varied pricing structures, where Oman sells standard grade petrol at 56 rupees and diesel at 63 rupees per litre. In Bahrain as well, standard grade petrol costs 56 rupees while diesel is priced at 61 rupees per litre. Saudi Arabia lists its standard grade petrol at 52 rupees and diesel at 43 rupees per litre. Kuwait offers even cheaper rates with petrol at 27 rupees and diesel at 36 rupees per litre. Furthermore, Qatar maintains the lowest rates where petrol costs just 14 rupees and diesel stands at 15 rupees per litre.
