Stories
US Petrol Prices Soar Past India's, Diesel Hits Record Highs Amid Global Supply Crisis
- •Petrol in America reached $4.4786 per gallon, equivalent to 113-114 rupees per liter, surpassing Delhi's 102.12 rupees per liter.
- •Diesel prices in the US crossed $6.50 per gallon (approx. 165 rupees per liter), significantly higher than Delhi's 95.20 rupees.
- •The crisis stems from global refining and supply issues, not just crude oil availability, with wars and attacks damaging refineries and disrupting fuel supply.
- •Ukrainian attacks on Russian refineries, decreased diesel shipments from the Middle East, and changes in China's exports contributed to a global refined diesel shortage.
- •US retail diesel prices exceeded $6 per gallon for the first time, indicating an extraordinary situation for the American market itself.
Key Questions Answered
The spike in US fuel prices is primarily driven by refining issues and global supply shortages rather than crude oil availability. Wars and attacks have damaged refineries, including Ukrainian strikes on Russian facilities, reduced diesel shipments from the Middle East, and shifted Chinese exports, creating an extraordinary shortage of refined fuel.
Petrol in America reached $4.4786 per gallon (about 113-114 rupees per liter), which is roughly 11 to 12 rupees higher than petrol in Delhi at 102.12 rupees per liter. Meanwhile, American diesel crossed $6.50 per gallon (around 165 rupees per liter), far exceeding Delhi's diesel price of 95.20 rupees per liter.
Disruptions in global refining across Russia, China, and the Middle East have severely tightened petroleum supply. Consequently, US gasoline imports after March fell 32 percent below the five-year average, and distillate stocks are estimated to drop below 100 million barrels.
