Iran-US war triggers global oil shock: Crisis in Pakistan but India keeps petrol prices stable, here’s how

Rising tensions between Iran and the United States have pushed global crude oil prices higher, creating pressure on fuel markets worldwide. Many countries are facing rising petrol and diesel costs, but India has managed to keep prices relatively stable. This has surprised neighbouring Pakistan, where fuel prices have been volatile. Pakistani Petroleum Minister Ali Malik recently questioned how India has been able to control petrol prices despite the global crisis.

Pakistan Questions India’s Price Stability

In a recent interview, Ali Malik expressed concern over the fuel crisis in Pakistan and compared it with India’s situation. He said that while Pakistan is struggling with rising prices, India seems to have absorbed the impact of costly crude oil more effectively. His remarks reflect the growing pressure on Pakistan’s economy as fuel costs continue to rise.

Role of Strategic Oil Reserves

One of the key reasons highlighted is India’s strong strategic oil reserves. These reserves allow the country to manage short-term supply shocks and reduce the immediate impact of global price spikes. Along with this, India’s large foreign exchange reserves provide a financial cushion during such crises.

Impact of IMF Conditions on Pakistan

Pakistan’s situation is more complicated due to its ongoing commitments with the International Monetary Fund. The country has to follow strict financial conditions, including tax policies on fuel. According to Malik, Pakistan had to increase taxes on petrol and diesel to manage losses, which directly affected consumers.

Fuel Policy Differences

India has taken a different approach by reducing central excise duty on fuel in the past, which helped ease the burden on consumers. This move also supported oil marketing companies facing losses due to rising crude prices. In contrast, Pakistan had to shift the burden by adjusting taxes, even reducing diesel tax to zero and placing more pressure on petrol pricing.

What It Means for Consumers

While global oil prices remain uncertain, India’s strategy has helped keep fuel prices stable for now. However, experts believe that long-term stability will depend on global market trends. For Pakistan, the challenge remains tougher due to economic constraints and external financial obligations.