Who doesn’t get worried about the rising cost of petrol, raise your hands! Haha, I know it all of us get affected by it, right? Everyone who travels – either for pleasure or for work (or both!), knows that recent changes in taxes on fuel has led to a significant rise in its price. Some of us would remember the times when the difference between the prices of petrol and diesel was huge.
But now, both are at almost the same cost, and this means that the travel and transport industry is affected by it a lot more than we think. Fuel, in some form or the other, is an indispensable part of everyone’s day-to-day life – and even more so, if you’re a traveller. And the recent changes are bound to have an impact on us, although a lot of us are still trying to understand the nuances of the recent changes. In this post, we will try to make some sense of all this.
First, let’s try to understand how it works. To put it roughly, the retail price of diesel sold to consumers is a reflection of the total price incurred in producing and/or delivering the product to customers. The main factors that contribute in deciding the retail price of diesel can be boiled down to these 4:
- The cost of crude oil purchased by the government
- Cost involved in refining this crude oil
- The cost of distribution, marketing, and retail station, including profits
- Applicable and current taxes applied by the government
But how does it affect the taxes and prices of fuel in India? Here’s how:
The prices of petrol and diesel are almost same now. As a direct result of this cost change, the public transport prices are going to go up. Think buses, trains and all other local means of getting from A to B.
The increase in the rates of diesel and petrol are bound to have an impact on all the major sectors like FMCG, transportation, auto and more. So, say hello to higher prices of daily goods from Milk to Toothpaste.
The impact of fuel prices also affect other areas, and travellers might find those essential commodities such as vegetables, fruits and cereals might get costly.
Another new update is, that now the petrol and diesel prices will change every day.
Sounds complicated, right? But according to the latest mechanism adapted by the government, India’s fuel prices including petrol and diesel will be aligned to international crude oil prices on a daily basis. As per a recent report in Reuters, the state-owned fuel retailers have a plan to implement a daily revision of fuel price in five cities as soon as possible. This means that as an end user will get a different price every day. So be prepared to check the rates of petrol and diesel daily before you decide to refuel your vehicle.
However, one ray of hope in this entire situation that seems chaotic as of now is that since the international fuel prices do not change a lot on a daily basis, we as consumers and commuters, are unlikely to get affected a lot. A thing to keep in mind here is that if and when any major international policy change affects the price of crude oil, this will directly affect the Indian commuters. But experts assure us that going by the history, this is unlikely.
There are more fine print to this price change, but the points above explain the impact of fuel price changes on Travel sector and on our daily life in a nutshell. Let’s prepare for it wisely.
How Can One Plan Travels and Vacations Wisely, Given The Fuel Prices?
Well, as it is clear, the fuel costs are going to constantly go up in the near future. This makes it clear that advance planning for your vacations and trip has already become crucial. So what do we do about it?
Well, we start planning ahead and my personal advice is to start making a Travel Goal so that you know what you are working towards and to then start putting money for it. Smart, isn’t it? This idea is also as easy as it is smart.
You can plan this future travel saving through the Edelweiss Guided Portfolios because they ensure that the benefits we earn in terms of profit, will be enough to counterbalance the rising cost of our travels.
Take a look at their website, and try it out today. Because there’s no better time to plan your vacation than right now, right?