Fuel prices in India are truly volatile and keep fluctuating every day. These fuel prices have a direct impact on car owners and travellers who have to commute daily from one place to another. The fuel prices in metro cities, especially Mumbai, are constantly rising and are amongst the costliest fuel prices in the country.
However, the fuel prices on one of the busiest routes in India, the Pune-Mumbai highway in Maharashtra, tend to be cheaper compared to other routes, given the various factors that influence these fuel prices.
What Are The Factors That Determine Fuel Prices In Maharashtra?
The fuel price in India�s Maharashtra is determined based on global, technical and financial factors. Here are the key factors that determine the fuel prices in Maharashtra, the state where the Mumbai-Pune highway is located.
The price of crude oil: The fuel is extracted from crude oil and the price of crude oil has a direct impact on the price of petrol and diesel. If the crude oil prices rise, it automatically leads to an increase in the price of the fuel, and vice versa.
Taxes: Government taxes also impact fuel prices since these oil prices are inclusive of the applicable local and state taxes and the excise duty.
Currency Movement: Currency movements also have a direct impact on fuel prices. If the US dollar grows stronger against the Indian currency, the prices of crude oil will also go up, eventually impacting the cost of fuel in India.
Transportation Cost: Since the fuel has to be transported from the refineries to the fuel stations, these transportation costs also have a crucial role to play in determining the overall cost of the fuel.
Supply and demand: The supply and demand of fuel also affect fuel prices up to some extent. With the increase in private vehicles, the demand for more fuel keeps increasing, putting pressure on the supply, thus leaving the fuel price in India to increase significantly.
Commission and profit margins: The commissions and profit margins of the retailers also determine the end price of the fuel. The retailers who can manage with low-profit margins might sell petrol and diesel at cheaper prices than others.
Are Fuel Prices On The Mumbai-Pune Highway Cheaper Or Costlier?
Over the years, the fuel prices in Maharashtra and also in other states of India have registered a drastic increase. However, the fuel prices on the Pune-Mumbai highway are comparatively cheaper due to several reasons that are listed below.
The distance between the refineries and the depots provides the benefit of low transportation costs. The lower transportation cost allows the fuel stations on the Pune-Mumbai highway to provide fuel to the commuters at cheaper rates than at other places.
The Mumbai-Pune highway witnesses busy traffic, leading to increased fuel consumption. The increased sales of fuel thus allow the fuel stations to even manage on low-profit margins.
There�s some intense competition that keeps going on amongst the fuel stations on the Mumbai-Pune highway. It makes these retailers provide fuel to the commuters at cheaper and more affordable prices to gain more customer traction to take over the competition.
How Do These Fuel Prices Impact The Commuters?
The cheaper fuel prices on the Pune-Mumbai highway do impact the commuters travelling on the Mumbai-Pune highway. The lower prices leave a positive impact on the people and have attracted more commuters to the route due to the affordability reasons.
The comparatively less cost of fuel does help people in getting a little financial relief. This may be the reason why there�s so much traffic on this route which eventually leads to high fuel consumption even though the prices are low.
How Can Fair Fuel Pricing Be Ensured?
While the Pune-Mumbai highway does provide lower fuel cost benefits to the commuters, it is the result of fuel price manipulation by the retailers to beat the competitors. Fair fuel pricing strategies are important to be implemented to ensure there are no loopholes in the prices being offered to consumers.
The strict enforcement of rules and regulations can furthermore guarantee the authenticity of fuel prices in India. It will also encourage healthy competition among fuel retailers. Instead of reducing or increasing the prices unethically, there should be transparent pricing policies and routine audits to verify the same.
The fuel prices on the Pune-Mumbai highway are comparatively cheaper due to several reasons. The fluctuations in the petrol and diesel prices, however, happen every day and the prices could rise anytime.
For these reasons, adapting to fuel-efficient practices is important to aid commuters to save big on their high fuel expenses as well as protect the environment. Since fuel prices keep changing daily, you should be knowing about the latest fuel price in India.
You can quickly check the latest petrol and diesel price on the Park+ website or by downloading the Park+ app. It is a sophisticated information and services app, that solves modern-day problems faced by vehicle owners. You can also take benefit of a wide-range of other services that Park+ offers.