When converted to international dollars, the equivalent price of fuel in India is 5.2 international dollars per litre, the third-highest in the world after Sudan (Int $8) and Laos (Int $5.6) LPG rates in India are the highest in the world.
Digital Desk: According to the buying power of currencies in their domestic market, the price of LPG in India is the world's highest per litre, the price of petrol is the third-highest, and diesel is the eighth-most costly.
Nominal exchange rate vs. purchasing power
Price comparisons at the nominal exchange rate (the rate at which currencies are exchanged on the international market) obscure the reality that various currencies have varying buying power in their respective markets.
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The math
Petrol costs Rs 120 a litre, which equates to $1.58 at the current nominal exchange rate of Rs 75.84 per dollar. However, a dollar in the American market might purchase a lot less than Rs 75.84 in India. In March, for example, the average price of a kilo of potato in the United States was $1.94.
At the current currency rate, this converts into Rs 147, which could purchase more than 7 kg of potatoes in India in March.
Now comes the crunch.
When converted to international dollars, the equivalent price of fuel in India is 5.2 international dollars per litre, the third-highest in the world after Sudan (Int $8) and Laos (Int $5.6).
LPG rates in India are the highest in the world, at Int $3.5 per litre. Following India are Turkey, Fiji, Moldova, and Ukraine. LPG costs roughly $1 per litre in Switzerland, France, Canada, and the United Kingdom. The price of diesel in India is the ninth highest in the world, at Int $4.6.
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