How petrol prices are calculated in India?
- Shekhar Chs
- Expert +
- 18 Follows
Fuel Prices are its Peak high in both Petrol and Diesel of Recent Times.
Ever wondered how these are calculated? Here is a quick note:
Since Fuel Prices in India are excluded from GST Framework by the Government of India, and despite of slight cut in Excise Duty - due to International Crude prices on its recent highs - Petrol and Diesel Prices are also on its peak.
Major reasons for rise in Fuel price:
1. Depreciating Rupee against Dollar by crossing records lows of Rs 71 against 1 Dollar
2. Hike in Crude Oil Prices from 45$ / Barrel to 81 $ / Barrel
below chart will give you the glimps of how fuel price is calculated
Petrol Price * Diesel Price Calculation * International Price of Crude Oil with Ocean Freight (as on 4th September 2018) 79.93 $ or Rs 5700 per Barrel 79.93 $ or Rs 5700 per Barrel 1 Barrel of Crude Oil 159 Litre 159 Litre Crude Oil - Cost per Litre Rs 35.89 per Litre Rs 35.89 per Litre Basic OMC Cost Calculation * Entry Tax, Refinery Processing, OMC Margin, Freight Cost Rs 3.45 per Litre Rs 7.14 per Litre Basic Cost of Fuel after Refining Cost Rs 39.34 per Litre Rs 43.03 per Litre Additional: Excise Duty + Road Cess as Charged by Central Government Rs 19.48 / Litre on Petrol Rs 15.33 / Lit on Diesel Pricing Charged to Dealers before VAT Rs 58.82 per Litre Rs 58.36 per Litre Calculating Dealer Retail Price - Base Location Delhi Commission to Petrol Pump Dealers Rs 3.63 per Litre Rs 2.53 per Litre Fuel Cost Before VAT (rounded off for approximation) Rs 62.45 per Litre Rs 60.89 per Litre Additional:VAT (Varies from State to State - 27% on Petrol & 16.75% on Diesel + 25p as Pollution Cess with Surcharge) Rs 16.86 / Lit on Petrol Rs 10.45 / Litre on Diesel Final Retail Price as on 4th September 2018 -(calculation) Rs 79.31 per Litre Rs 71.34 per Litre
- 35Kiran KGirija KumarElizabeth Smith