The rates of fuel are seeing an all-time high. This is not the case with our country only; however, other countries face the same. But different states in India have to pay different amounts. For example, as mentioned, the fuel rates in Arunachal Pradesh and Jharkhand are different. Arunachal Pradesh has been paying a higher fuel price than Jharkhand for the past few months.
There are multiple reasons responsible for the same, some of which we will try to talk about in detail! The situation will not get better anytime soon, as per the latest record; hence, we will try to decipher the reason behind this price change.
Important Factors That Lead to The Rise Of Fuel Prices in Arunachal Pradesh Than Jharkhand
The fuel price in Arunachal Pradesh is quite high compared to Jharkhand, and there are a few reasons behind the same. Some of the most common reasons behind this are:
Market Dynamics - Demand And Supply
The first and most important contributing factor behind the higher price of fuel in Arunachal Pradesh than in Jharkhand is the market dynamics. Here the demand and supply ratio is not optimum, creating the most problems. Arunachal Pradesh is unable to meet the high demand for fuel with the supply that it has. This is one of the major reasons why it has also attracted much criticism from the government.
If we compare the scenario in Jharkhand, the entire mechanism is quite well structured. The supply that it has got fuel meets the demands of the people, and hence it does not cost them higher than required. Jharkhand is one of the most well-organised states for fuel consumption, so the fuel price is mostly a check.
Transportation of Fuel
For the fuel to reach the states, investing in a safe and smooth transportation system is extremely important. Arunachal Pradesh needs more pipeline systems to transport fuel smoothly from the centre to the state. This is why it has to invest in other, more expensive modes of transportation to keep the fuel safe and help it reach quickly. This cost gets added to the pre-existing fuel price and makes it more expensive.
This is, however, different from Jharkhand. They have one of the most efficient and smooth systems to transport fuel very easily with the help of simple pipeline systems. Not only that, this transportation takes little time as well, and hence it is more money efficient. The Jharkhand government has taken enough steps to ensure this cost can be ruptured and the pipeline system can be enhanced.
Natural Refineries
Having a natural resource nearby could be a great option to curb fuel prices.
? Arunachal Pradesh
Arunachal Pradesh is one of the states with the misfortune of needing their refineries. This is one of the major reasons it must depend on others and spend more. The refinery cost is one of the major reasons Arunachal Pradesh's fuel price is not going down. The geographical location is a deterrent and adds to high fuel prices.
? Jharkhand
On the other hand, Jharkhand is known for its mining of natural resources. This is one of the only states in India known to have a refinery which automatically allows for fuel production. There is a lot of access to coal, ensuring it can be used as an alternative resource. Coal takes precedence in a lot of requirements, and this pushes the price of fuel further down.
Dealer Commission
And finally, another very important requirement, in this case, is the dealer commission. This ensures that the commoners do not have to pay much for the fuel. Arunachal Pradesh has a market with very trusted options to get fuel. Hence the commission rate is much higher.
However, with Jharkhand, that is different. There are too many options in the market. With so many choices, you often only have to pay a little for the dealer commission maintained at a minimum rate.
Conclusion
The price of fuel is not going down anytime soon. The global rise in the demand for crude oil, inflation rates, and the higher value of the US dollar has made this market highly volatile. If you want more options, remember to download the Park+ app today. We have tried to give you all the required information about fuel prices in different states. Not only that, you will be able to get all kinds of car-related assistance, like the insurance choices and cost, challan specifications, car guides and similar others.