While fuel prices in India are stable even after the steep rise in crude oil prices due to the West Asia conflict, neighbour Pakistan is having a tough time managing the energy crisis.
Playing the role of mediator between the United States and Iran has not helped Pakistan shield itself from the harsh impact of the oil supply shock.
Pakistan Petroleum Minister Ali Malik has reportedly accepted the weak footing of his country on the energy front while acknowledging India’s strategic planning in limiting the impact of the crisis.
Facing criticism for high petrol and diesel prices in the country, Malik said that India worked on securing itself from such crises, while Pakistan was restricted by the conditions of the bailout packages from international borrowers.
“India doesn’t just have 600 arab dollars worth of reserves, but they also maintain strategic reserves… They tried to insulate themselves by reducing taxation as oil prices soared… They had the fiscal space to do that,” Malik told local news media.
While crude oil prices have jumped to their highest levels in three years, the Indian government has reduced taxes on fuel costs to control prices in the country.
As part of mitigating the energy crisis, the Indian government has taken various steps such as limiting the supply of natural gas for commercial establishments, while oil companies have raised diesel prices for bulk buyers.
But there has been no increase in the retail prices of petrol and diesel since the war began in the Gulf region.
However, there are anticipations that Indian oil marketing companies may raise prices as elections in the four states have concluded.
On the other hand, the situation in Pakistan is getting worse. The Pakistani government had to raise petrol prices by a whopping PKR 80 per litre to PKR 378 per litre.
The hike was taken back after sharp criticism in the country. Unlike India, which maintains strategic petroleum reserves of 60–90 days, Pakistan holds only 5 to 7 days of commercial crude oil reserves.
