Indian fuel affordability – What India pays compared to 60 countries
The 'Gasoline Prices Around the World: The Real Cost of Filling Up' study puts India in a dismal 61st place of 61 countries included in the study in terms of fuel affordability.
Fuel prices for the end user have been on the rise globally. For Q1 2018, gas prices rose at about 6.1 percent on average. But it’s not just the price of fuel globally that’s startling but it’s affordability considering global currencies and earnings vary greatly, and Indian fuel affordability is a abysmally low..
Bloomberg’s study chronicles each quarter and compared fuel prices between 61 countries based on three metrics: price per gallon in varied currency, how fuel price compares to a day’s wage in the country, and what is the total amount spent on fuel by citizens to reach actual expenses on fuel annually as a percentage of their total income.
Gas prices are soaring around the world—about 6.1 percent, on average, in the past three months. Behind that increase is a wide range of price swings experienced differently by every nation. We ranked 61 countries by three economic measures to see which has the most affordable gas and which feels the most pain at the pump.
What’s alarming is India seems adept at finding itself paying for the least-affordable fuel in the ranking. ‘Low wages and limited infrastructure result in widespread energy poverty. The average Indian would have to spend 76 percent of daily income to afford a gallon ( 3.76l) of gasoline. The government plans to end the sale of internal combustion engines in 2030.’ And while this is an aggressive target, it’s unclear how the country will get there.
In terms of gasoline price, India ranks 21st on the list with an average price of a litre of gas pegged at Rs 77.35. That doesn’t sound as steep as Hong Kong’s price that averages Rs 135.91 but is in fact quite a steep price to pay for a nation with a with a low average daily income of Rs 384.71. Given that as median earning, it would take 20.11 percent of a day’s wages to afford a litre of gas. That’s more than a fifth of daily wage. Needless to say, Indian fuel affordability places it at 61st place for affordability.
What’s also worth noting is how little fuel is consumed on average by a person. It appears, the average driver uses 22.55 litres a year, which amounts to only 1.24 percent of the typical salary and puts India 30th on the list in terms of income spent. This is because the fuel factored in is 95-octane.