Petrol prices fall sharply in key markets, India among biggest declines

Vijay Valecha, February 20, 2026, Gulf News

Dubai: Syria, Iran and Japan recorded the steepest petrol price declines globally over the past five years, with India also ranking among the top ten markets where motorists are paying less today than they did in 2021, reflecting shifts in supply dynamics, geopolitics and global crude trends.

According to Zutobi’s 2026 Global Gas Prices Report, regular unleaded petrol shows Syria registering the largest drop, with prices falling from $9.27 per gallon in 2021 to $3.34 in 2026, a decline of nearly 64%. Iran followed with a 50% fall, while Japan recorded a drop of almost 23% over the same period.

Lebanon, Egypt, Yemen, Chad, Central African markets, India and Sweden completed the top ten list of countries where fuel costs have declined, pointing to varied drivers ranging from subsidies and currency movements to demand cycles and global supply conditions.

India among markets seeing easing costs

India’s presence on the list reflects a mix of domestic pricing policies, global crude movements and shifts in refining supply. While prices have not collapsed in the same way as heavily subsidised markets, the broader trend shows fuel costs stabilising after earlier spikes driven by global oil volatility.

The trend comes even as demand remains strong in the country. Zutobi data shows fuel consumption easing slightly from record levels during early 2026, although diesel demand continued to grow while gasoline demand saw marginal declines during the same period.

Market analysts say petrol price movements across countries remain closely tied to geopolitical developments and supply expectations in the crude market.

Despite some downward pressure on petrol prices in several markets, oil traders remain cautious due to geopolitical risks and supply uncertainties.

“Trading volumes have been lighter, which has kept price action somewhat uneven, but the overall tone in oil markets remains cautiously bullish,” said Vijay Valecha, Chief Investment Officer at Century Financial. “Demand–supply fundamentals remain slightly bearish, but crude prices continue to find support from lingering geopolitical risk premium, with sustained tensions likely needed to keep prices firm.”

He pointed to ongoing negotiations between major powers as a key risk factor.

“The current focus remains on the ongoing US-Iran talks in Geneva. If there are any diplomatic progress, this could lead to some reduction in the geopolitical premium, although the tensions remain elevated currently.”

Regional developments continue to add uncertainty.

“Iran’s recent naval drills near the Strait of Hormuz, a key oil transit route carrying nearly a fifth of global supply, continue to keep markets alert to potential disruptions. Political rhetoric from both sides has also remained firm, adding to uncertainty and keeping a potential risk premium embedded in prices.”

Price extremes remain wide globally

While some countries have seen declining petrol costs, global price gaps remain stark. Libya and Iran currently have the cheapest fuel globally at about $0.13 per gallon, followed by Venezuela at $0.16.

At the opposite end, Hong Kong remains the most expensive market, with petrol priced at nearly $17 per gallon, more than double global averages, followed by Malawi and the Netherlands.

The wide price disparities highlight how domestic policies, taxes, subsidies and supply access continue to shape consumer fuel costs more strongly than global crude prices alone.

Analysts expect petrol price movements in coming months to remain closely linked to geopolitical developments, potential production increases from OPEC+, and evolving demand trends across major economies, factors that will continue to influence costs faced by motorists worldwide.

Source

Gulf News