Fuel prices significantly affect every car owner's life, impacting their budget and travel plans. If you're a car owner in Maharashtra, you may have noticed that fuel prices in the state are higher than in other regions.
In this article, we'll delve into the reasons behind the soaring fuel prices in Maharashtra and provide valuable insights for car owners like you.
Exploring the reasons behind fluctuating fuel prices helps us understand why fuel costs fluctuate.
Maharashtra gets its crude oil from other countries.
The price of crude oil can change a lot globally.
When global oil prices increase, the fuel prices in Maharashtra also increase.
The Maharashtra government adds extra fuel charges, called taxes and duties.
These charges increase the overall price of fuel.
That's why fuel costs more in Maharashtra compared to some other places.
Maharashtra's location and transportation expenses affect fuel prices.
Since Maharashtra is far from where fuel refineries are, it costs more to transport it. These transportation costs get added to the fuel price, making it higher.
In simple terms, Maharashtra relies on imported crude oil, and when global oil prices rise, it affects fuel prices in the state.
Uncovering Maharashtra's tax structure and its impact on fuel prices sheds light on how government policies and taxation affect the state's fuel cost.
In Maharashtra, the current tax structure is 26% VAT+ Rs.5.12/Litre additional tax on petrol and 24% VAT on Diesel that the government levies.
VAT increases fuel prices because it adds more money to your final price.
The government of Maharashtra collects this tax to fund different things in the state.
Apart from VAT, the government of India also adds another tax called the central excise duty on fuel.
The central government imposes this duty and affects fuel prices in Maharashtra too.
Central excise duty is collected to support various government programs and initiatives.
So, VAT and central excise duty are additional charges added to the fuel cost in Maharashtra, making the prices higher when you fill up your car.
Examining the impact of transportation costs on fuel prices reveals how logistical expenses contribute to the overall cost of fuel.
Distance from Refineries: Maharashtra's distance from major refineries affects transportation costs, eventually passed on to consumers.
Infrastructure and Logistics: The state's infrastructure and logistics challenges contribute to higher fuel prices.
Understanding the role of market forces in fuel price fluctuations unveils how supply and demand dynamics influence the ever-changing cost of fuel.
Demand and Supply Dynamics: Fuel prices in Maharashtra are influenced by the demand and supply dynamics, both at the national and international levels.
Crude Oil Exchange Rate: Exchange rate fluctuations impact fuel prices as crude oil is traded globally in US dollars.
Here are some easy tips to help you save money on fuel and make your car go farther!
Drive at a steady speed: Avoid speeding up and slowing down too often. Maintaining a consistent speed helps save fuel.
Keep your tires properly inflated: Check your tire pressure regularly and ensure they are inflated to the recommended level. Properly inflated tires can improve fuel efficiency.
Remove unnecessary weight: Don't carry extra stuff you don't need in your car. The heavier your car, the more fuel it needs.
Use the air conditioning wisely: Running the AC can always use more fuel. Use it when needed, but keep the windows closed when driving at higher speeds.
Plan your trips: Combine errands and plan your route efficiently to avoid unnecessary driving. The shorter the distance you travel, the less fuel you'll use.
Turn off the engine when idle: If you're waiting for more than a minute, it's better to turn off the engine. Idling uses up fuel without going anywhere!
Avoid aggressive driving: Rapid acceleration, sudden braking, and speeding waste fuel. Drive calmly and smoothly for better fuel efficiency.
Get regular car maintenance: Keep your car in good shape by getting regular check-ups. A well-maintained car performs better and uses less fuel.
Consider carpooling or public transportation: Sharing rides with others or using public transport can reduce the number of cars on the road, saving fuel and money.
Remember, by following these tips, you can save fuel, reduce expenses, and help the environment too!
In conclusion, the higher fuel prices in Maharashtra can be attributed to various factors, including imported crude oil, taxes, duties, and transportation costs.
As a car owner, it's essential to understand these factors and explore ways to mitigate the impact on your budget.
You can make smarter decisions and optimise your expenses by adopting fuel-efficient practices and utilising the Park+ app to stay informed about fuel prices.
Download the Park+ app today to access real-time fuel price information and a range of other useful services for car owners.