Fuel price is undoubtedly a matter of concern. The way it is going up daily is pretty alarming. The high price of fuel not only affects the transportation cost but also other walks of life. The high fuel price in Arunachal Pradesh is quite high, and with every passing day, it is garnering a lot of attention. But what makes it higher than that of Sikkim?
Today, we will unearth some of the most important reasons why the fuel price is so high in Arunachal Pradesh than in Sikkim. Each state follows the fuel pricing policies as set up but the centre. However, some factors make all the difference.
There are a lot of contributing factors which sum up to be the reason behind high fuel prices in Arunachal Pradesh. Some of the most common ones are given below for your reference:
If the market has a lot of competition, there is a high chance that the prices will not be higher than the rest. This is a contributing factor that is responsible for the high price in Arunachal Pradesh!
The market in Arunachal Pradesh is not competitive at all. This means that a few players in the industry make sure that they take the lead and charge a higher rate. There are few good options to source fuel for the commoners' usage; so, it is expensive.
On the other hand, when it comes to Sikkim, the state is small; hence, a few competitors can suffice the needs of the state. This is one of the major reasons why the fuel prices in Sikkim are quite affordable and cheaper than in states like Arunachal Pradesh.
The tax prices and many contributing factors tend to raise the fuel price in Arunachal Pradesh. One such important factor is logistics, which is transporting fuel from one place to another.
Regarding the logistical needs for fuel transport, the state has to be well connected with other states so that it does not cost much to the buyers. However, the case of Arunachal Pradesh is different. Arunachal Pradesh is located quite far from the central refineries; hence, it has a higher fuel cost.
On the other hand, Sikkim has a good transportation system, which is one of the major reasons why it is comparatively cheap. Sikkim pays less for transportation; hence, the overall end price is also quite less when compared with Arunachal Pradesh.
The infrastructure is one of the most important factors that will ensure that it is processed correctly after the crude oil gets delivered.
The maintenance of infrastructure in Arunachal Pradesh is extremely expensive, and there are few resources which can make the process less expensive. This is one of the major factors that make fuel more expensive here.
However, sustaining infrastructure in Sikkim is easy because the state does not need a big system of maintenance. Sikkim spends less on the infrastructure cost and hence does not burden those who buy it for commercial usage.
Also, when it comes to the difference in fuel prices between Arunachal Pradesh and Sikkim, there are a few other contributing factors like electricity cost, labour cost as well as the price to set up refineries.
The price disparity between Arunachal Pradesh and Sikkim is quite evident; hence, the state government needs to participate actively. Apart from these few factors, there are some global reasons, like the increase in prices for global crude oil and the exchange rates, which are extremely important.
If you want more updates on the different states' fuel prices, we suggest you download the Park+ app and read more about fuel prices. It is quite simple so that you can get information on more subjects like car insurance, parking, challan and many more!