Cooking Gas Price In India Is Highest In The World As Per PPP Model; 3rd Highest For Petrol!

According to a fairer and more understandable comparison of prices in different countries, economists have issued the Purchasing Power Parity (PPP) dollar estimation or the international dollar, according to which, the value of a US dollar does not translate to Rs 75.84 but Rs 22.6 in 2022.

According to this metric, LPG in India costs the highest in the world, while 1 litre of petrol in India costs the third highest in the world and 1 L of diesel costs the eighth highest.

The rise in prices of petrol and diesel in the country can be attributed to the skyrocketing prices of crude oil and commodities, caused by the Russia-Ukraine war, which are adding on to the already soaring inflation pressures.

LPG Costs Highest in India

Before understanding the metric by which one measures the prices of items and commodities on a global level, given different currencies, and domestic value of the same, and the purchasing power of different currencies, it is paramount to understand the unbiased approach of comparing monetary values of different currencies.

For example, 1 kg of onion costs $2.6 in the US, which on conversion comes out to be Rs 197.18. Now for this amount of Indian Rupee, you can easily purchase far more than 2 kg of onion. 

This is when PPP dollar estimation or international dollar comes into picture. It draws a correlation between how much local currency one can get for a commodity.

A litre of petrol costs Rs 120 in India, which according to the PPP metric, stands at around $5.2 international dollar value, the third highest in the world. For better comparison, it stands at $1.2 in the US. 

Similarly, diesel is priced at $4.6 for 1L, the 8th highest in the world, and LPG costs the highest, compared to 54 countries across the world, at $3.5/L, followed by Turkey, Fiji, Moldova and Ukraine. 

Source: TOI