Curious about the considerable difference in fuel prices between Andhra Pradesh and Haryana? As of May 19, 2023, petrol in Andhra Pradesh costs ?111.51 per litre, while in Haryana, it is priced at ?95.24 per litre�a substantial gap of ?16.27 can be seen.
This article delves into the contributing factors, such as taxes, transportation costs, and demand, that account for the higher fuel prices in Andhra Pradesh.
Andhra Pradesh and Haryana are two states in India that are located in the eastern and northern parts of the country, respectively. However, there is a significant difference in the prices of fuel in the two states. As of May 19, 2023, the price of petrol in Andhra Pradesh is ?111.51 per litre, while the price of petrol in Haryana is ?95.24 per litre. This difference of ?16.27 per litre is significant and raises the question of why fuel prices are so much higher in Andhra Pradesh.
There are several factors that contribute to the high fuel prices in Andhra Pradesh. These factors include:
Taxes: The government of Andhra Pradesh imposes a higher tax on fuel than the government of Haryana. This higher tax is one of the main reasons why fuel prices are higher in Andhra Pradesh.
Transportation costs: The cost of transporting fuel to Andhra Pradesh is higher than the cost of transporting fuel to Haryana. This is because Andhra Pradesh is located further away from the major refineries in India.
Demand: The demand for fuel in Andhra Pradesh is higher than the demand for fuel in Haryana. This is because Andhra Pradesh is a more populous state and has a larger economy.
These factors all contribute to the high fuel prices in Andhra Pradesh. The government of Andhra Pradesh has taken some steps to reduce the fuel tax, but these steps have not been enough to significantly reduce the price of fuel. As a result, consumers in Andhra Pradesh continue to pay more for fuel than consumers in other parts of India.
Let us look at the factors affecting fuel prices in both states in some detail:
As mentioned above, one of the main reasons why fuel prices are higher in Andhra Pradesh is because the government of Andhra Pradesh imposes a higher tax on fuel. The government of Andhra Pradesh collects a tax of ?30.93 per litre on petrol. This tax is in addition to the central excise duty and the cess that is imposed on petrol by the central government. The central excise duty and the cess on petrol are currently ?32.90 per litre and ?8 per litre respectively.
The high tax on fuel in Andhra Pradesh is a major burden on consumers. The high tax makes it more expensive for people to travel and to run their businesses. The high tax also contributes to inflation.
Another reason why fuel prices are higher in Andhra Pradesh is that the cost of transporting fuel to Andhra Pradesh is higher than the cost of transporting fuel to other parts of India. Andhra Pradesh is located further away from the major refineries in India. This means that it takes longer and costs more to transport fuel to Andhra Pradesh.
The high transportation costs are passed on to consumers in the form of higher fuel prices. This makes it more expensive for people in Andhra Pradesh to buy fuel.
The demand for fuel in Andhra Pradesh is also higher than the demand for fuel in other parts of India. This is because Andhra Pradesh is a more populous state and has a larger economy. The higher demand for fuel in Andhra Pradesh drives up the price of fuel.
The high demand for fuel in Andhra Pradesh is a result of the state's rapid economic growth. Andhra Pradesh has been one of the fastest-growing states in India in recent years. This growth has led to an increase in the number of vehicles on the road and an increase in the demand for fuel.
The high demand for fuel in Andhra Pradesh is a major challenge for the state government. The government is trying to increase the supply of fuel to the state, but it is difficult to keep up with the growing demand.
Haryana is located in the northern part of India. Haryana has a smaller population than Andhra Pradesh, but it has a larger economy. The demand for fuel in Haryana is lower than the demand for fuel in Andhra Pradesh.
The government of Haryana imposes a lower tax on fuel than the government of Andhra Pradesh. This lower tax is one of the main reasons why fuel prices are lower in Haryana. The transportation costs of fuel to Haryana are also lower than the transportation costs of fuel to Andhra Pradesh. This is because Haryana is located closer to the major refineries in India.
As a result of these factors, fuel prices are lower in Haryana than in Andhra Pradesh.
In conclusion, higher fuel prices in Andhra Pradesh compared to Haryana are influenced by multiple factors. These include higher taxes, increased transportation costs, and greater demand in Andhra Pradesh. Conversely, Haryana benefits from lower taxes and reduced transportation expenses, resulting in lower fuel prices.
It is crucial to understand these factors and their impact on the state's economy. Stay informed about fuel prices and find convenient parking solutions by downloading the Park+ app today. Visit the Park+ website/app for more information.