Betul located in Madhya Pradesh, is a city which depends on agricultural trade. It is well-connected by road with the State Highway 26 and the National Highway 69 and 59 A which passes through it. The State Highway increases connectivity between two states, which makes Betul a busy center. The petrol price in Betul, is significant because of the increased traffic on the roads.
Road transport generates revenue for the State and local administration. Local transport, interstate transport and national transport of goods and people form a strong network, providing livelihood for the people. Additionally, Betul generates revenue from Oil distilling, saw wood mills and silk production, which require transportation to different parts of the country.
Petrol Price in Betul
The petrol price in Betul has remained steady for the past three months. The petrol price in Betul today is 106.97. Until 6 months, the petrol price was around 118, marginal decrease from the previous year.
The upgrade of the quality of petrol from Bharat IV to Bharat Standard 6 petrol in Betul is welcome. This not only reduces the pollution levels in the city, it also gives greater fuel efficiency to the vehicles.
Diesel Price in Betul
The diesel price in Betul is lower than that of petrol. Diesel has been the go-to choice of many people, as an alternative to petrol because of the cost. Technologically advanced cars and buses with diesel engines have ensured fuel efficiency and better mileage at a lower cost.
Logistic operators and Cargo carrying lorries prefer diesel as it reduces their cost of operations.
The diesel price in Betul today is 92.31, and this rate has been holding for the past three months.
Reasons for the Rise in Fuel Prices
Petrol and diesel are produced by refining crude oil. This crude oil, which is the raw material, is imported, since India does not have enough crude oil reserves to supply the demand.
The prices for crude oil is set by the oil producing countries, with Saudi Arabia having a huge influence. The other major producers of crude oil in the word are the USA and Russia.
The rise in prices occur due to the following reasons:
World events like war, invasion
Economic Depression
Increased or Decreased Supply and Demand
Rupee Vs Dollar
Turbulent Weather Preventing Oil Extraction
Pandemic
Increase or Decrease Vehicle Use
The price of crude oil had fallen sharply during the pandemic since the whole world had come to a stand still. With the opening of countries, industries and trade, the price is reaching its pre-pandemic rates.
Tax on Fuel
With the increased procurement rate of crude oil, the tax system in India adds another layer of price increase. Namely, the excise duty and the VAT, increases the price of petrol and diesel fuels. The excise duty is imposed by the Centre and the VAT by the State.
The VAT applied by the States differ and don’t follow a uniform rate. Some States also levy an Additional Cess along with the VAT, which also adds to the overall fuel price in the area. These taxes form a reliable revenue stream for the governments, so reduction in these rates occur only in extreme situations.
In Madhya Pradesh, the VAT on petrol is around 29% and the VAT on diesel 26%. Any drastic changes in VAT, leave the State with a deficit budget. This makes it difficult for the administrators to proceed with their plans for the State.
When you consider the price of fuel paid by the consumer, most of the money goes towards these taxes. While this burdens the consumer, it contributes to the general welfare of the State.
Conclusion
The easiest way to know the price of petrol and diesel is through your smartphone. The Park+ app, is designed to give you up-to-date information of petrol and diesel prices across India. Any fluctuations in petrol and diesel prices can be tracked easily. This information can help you to make use of decreased fuel prices when you are travelling across different states in India.