Why Fuel Prices in Andhra Pradesh Are Higher Than in Maharashtra
Andhra Pradesh and Maharashtra are two states in India that are located in the southern and western 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 Maharashtra is ?109.98 per litre. This difference of ?1.53 per litre is significant and raises the question of why fuel prices are so much higher in Andhra Pradesh.
There are a number of 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 Maharashtra. This higher tax is one of the main reasons why fuel prices are higher in Andhra Pradesh.
Infrastructure: The infrastructure for transporting fuel in Andhra Pradesh is not as developed as the infrastructure for transporting fuel in Maharashtra. This means that it takes longer and costs more to transport fuel to Andhra Pradesh.
Competition: There is less competition among fuel retailers in Andhra Pradesh than in Maharashtra. This lack of competition allows fuel retailers in Andhra Pradesh to charge higher prices for fuel.
Taxes
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 run their businesses. The high tax also contributes to inflation.
Infrastructure
Another reason why fuel prices are higher in Andhra Pradesh is that the infrastructure for transporting fuel to Andhra Pradesh is not as developed as the infrastructure for transporting fuel to Maharashtra. 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.
Competition
The third reason why fuel prices are higher in Andhra Pradesh is that there is less competition among fuel retailers in Andhra Pradesh than in Maharashtra. This lack of competition allows fuel retailers in Andhra Pradesh to charge higher fuel prices.
There are a number of reasons for the lack of competition among fuel retailers in Andhra Pradesh. One reason is that the government of Andhra Pradesh has granted a monopoly to a few large fuel retailers. Another reason is that the government of Andhra Pradesh has made it difficult for new fuel retailers to enter the market.
The lack of competition among fuel retailers in Andhra Pradesh is a major problem for consumers. It means that consumers have less choice and have to pay higher fuel prices.
Conclusion
The high fuel prices in Andhra Pradesh are a major burden on consumers. The high fuel tax, the high transportation costs, and the lack of competition among fuel retailers all contribute to the high price of fuel in the state. The government of Andhra Pradesh is trying to address the issue of high fuel prices, but it is a difficult challenge to overcome.
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.