Petrol and Diesel Now Cheaper in India Than US as American Fuel Prices Surge
Petrol prices in the United States have moved above those in India, despite the US being the world’s largest crude oil producer. As of September 21, 2026, gasoline in the US was priced at $1.27 per litre, or about ₹121.75, compared with $1.137 per litre, or around ₹108.69, in India.
This made US gasoline about 12% more expensive than petrol in India. The difference was wider for diesel, which stood at $1.725 per litre in the US against $1.027 per litre in India.
The two countries had similar gasoline prices of around $1.07 per litre in August. By late September, US prices had risen about 19%, while prices in India were up around 6%.
The increase in American fuel prices has come as crude oil traded at around $100 a barrel in mid-September amid geopolitical volatility in the Strait of Hormuz. The US national average gasoline price reached $4.43 per gallon on September 17 and $4.4786 per gallon on September 21.
Diesel prices have risen even more sharply. The US national average reached a record $6.4866 per gallon on September 19, up 33 cents, or 5.3%, in a week.
Before the US-Iran conflict began on February 28, diesel was priced at $3.75 per gallon. It has since risen about 73%. Regular gasoline increased from $2.98 per gallon before the conflict to $4.4759 on September 19.
California recorded still higher prices, with diesel reaching $8.4161 per gallon and regular gasoline $6.1372 per gallon.
The Strait of Hormuz normally handles around 20% of global oil and LNG flows. According to the information available, Middle East exports fell by more than 60% in March following severe disruption to transit through the strait. Attacks on Saudi Arabia’s East-West pipeline, disruptions at Russian refineries and higher refining margins also affected global supply.
Why high US oil production does not mean cheaper petrol
The US produced a record 13.6 million barrels of crude oil per day in 2025, compared with 9.9 million barrels per day in Russia and 9.6 million in Saudi Arabia.
However, crude oil is traded globally, and the amount a country produces is not the only factor determining prices at fuel stations. International crude prices, refining costs, transportation and distribution expenses and local taxes also affect the final retail price.
The comparison also does not mean the financial burden of fuel is the same for consumers in India and the US. The information available points to differences in per capita income, fuel blends, taxation and vehicle fuel efficiency between the two countries.
