Arunachal Pradesh Pays More For Fuel Than Manipur- Unravel Why

Fuel is one of the most important requirements all around the globe. This is the basic resource that makes functioning so smooth for us. But have you noticed that the fuel prices are increasing every day? This leads to a rise in food, transportation, and cooking gas. The most surprising thing is that the prices are still growing in most parts of the same country.

If you compare the fuel price in Arunachal Pradesh with that of Manipur, you can see how high the former is. There are a lot of minute contributing factors that lead to this rise. The rise and price of fuel is one of the major reasons why the government is also receiving quite a backlash.

Contributing Factors For the Rise of Fuel Price In Arunachal Pradesh in Comparison With Manipur

We have to keep in mind that both states' internal and external factors play an extremely important role in ascertaining the fuel price. Some of the most important contributing factors in this case are:

Demand And Supply Ratio

If we go by the simple principles of the demand and supply ratio, we will understand that if the supply exceeds the demand, it will create a moderate pricing range. On the other hand, if the demand is more than the supply, then there is a high chance that it will lead to a price hike.

? Arunachal Pradesh

If we consider the population size of Arunachal Pradesh, then it is quite big, and hence the demand for fuel is also at an all-time high. However, the demand for fuel in this part of the state is not at the optimum level, so you have to pay more for fuel. If the demand met the supply, this would not be an issue.

? Manipur

On the other hand, the population size of Manipur is quite small, so the demand is also low. This ensures that the supply is enough and it can help the people without increasing fuel prices.

Cost of Fuel Transportation

The cost of transporting fuel is one of the most important factors which play a deciding role in this case. The geographical location of Arunachal Pradesh is such that it becomes extremely difficult to travel from the refinery to the state. This is one of the major reasons Arunachal Pradesh's fuel cost is so high. If the transportation system becomes smooth, it will lower the cost of fuel.

Conversely, Manipur boasts of one of the most smooth roads, allowing for simple and easy fuel transportation. This is why Manipur's fuel prices are quite low, as it does not contribute to an additional cost. The transportation cost also includes other parameters like handling charges, which are also less in Manipur.

Competition Among Dealers

The condition of Arunachal Pradesh is such that few dealers are willing to make the investment and fuel available to the masses. This is one of the major reasons why the fuel prices in Arunachal Pradesh are so high. Only a few players are in the field, and they have increased the commission rates, which automatically impact the overall fuel price.

Manipur, on the contrary, is quite a small state. The number of dealers in this part of the country is quite high, and they can meet the demand well. This is another reason why the fuel price is Manipur is more affordable when you put it in comparison with Arunachal Pradesh.

Conclusion

Apart from the factors we have just mentioned, some global reasons contribute to the high price and make it more vulnerable. The price of crude oil in the entire world is quite high, which adds up to the high fuel value in Arunachal Pradesh, making it more expensive. Additionally, the date of the American dollar is continuously going up when you put it in comparison with the Indian rupee. Hence, to procure the crude oil, you have to pay more.

The fuel price in Arunachal Pradesh will be quite a bit high when you compare it with Manipur, and state factors are one of the major reasons behind this. If you want to get more reliable information about the high fuel prices in different states of India, you can download the Park+ app today. The app is extremely easy to use and will give you information about other factors like car insurance, the price of challan, and others.