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India, South Korea stand out as the oil shock hits Asia harder

Since the start of the Persian Gulf conflict, oil prices have remained elevated and volatile. But the pass-through to the prices different countries actually pay for their fuel has varied.

India and South Korea have seen a particularly quick increase in their expenses. By comparison, the impact on the United States was much smaller, reflecting its position as a net energy exporter.

China, South Korea and Japan scaled back imports in April. But India, with little domestic oil and less fuel stockpiled, kept its import volumes steady. Remarkably, India ratcheted up its production of LPG (a key cooking fuel) in March, and maintained its refineries’ run rates.

The government also tried to shield consumers with a fuel price freeze, though that was wound down recently. Indian Oil Corp Limited, the state-owned fuel retailer, has increased fuel prices by multiple times since May 15.