How petrol prices are calculated in India?



      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 Barrel79.93 $ or Rs 5700 per Barrel
      1 Barrel of Crude Oil159 Litre159 Litre
      Crude Oil  - Cost per LitreRs 35.89 per LitreRs 35.89 per Litre
      Basic OMC Cost Calculation *  
      Entry Tax, Refinery Processing, OMC Margin, Freight CostRs 3.45 per LitreRs 7.14 per Litre
      Basic Cost of Fuel after Refining CostRs 39.34 per Litre Rs 43.03 per Litre 
      Additional: Excise Duty + Road Cess as Charged by Central Government
      Rs 19.48 / Litre on PetrolRs 15.33 / Lit on Diesel
      Pricing Charged to Dealers before VATRs 58.82 per LitreRs 58.36 per Litre
      Calculating Dealer Retail Price - Base Location Delhi  
      Commission to Petrol Pump DealersRs 3.63 per LitreRs 2.53 per Litre
      Fuel Cost Before VAT (rounded off for approximation)Rs 62.45 per LitreRs 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 PetrolRs 10.45 / Litre on Diesel
      Final Retail Price as on 4th September 2018 -(calculation)Rs 79.31 per LitreRs 71.34 per Litre






    • 6
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