## Calculations of Petrol Prices in India

May 16, 2011

If the cost price of petrol per litre is Rs 58.90, following is the break up of cost calculated by the government.

• Basic Price: Rs 28.93
• Excise duty: Rs 14.35
• Education Tax: Rs 0.43
• Dealer commission: Rs 1.05
• VAT: Rs 5.5
• Crude Oil Custom duty: Rs 1.1
• Petrol Custom: Rs 1.54
• Transportation Charge: Rs 6.00
• Total price: Rs 58.90

Company Basic Price calculation – Considering that the current price of crude oil is \$107 (on 22 September 2008) per barell, cost of per barrel in RS will be 107*45.40 (\$1 = Rs45.40 as on 22 September 2008) = 4858.

One barell consists of approximately 160 litres. So Price of crude oil per litre will be 4858/160 = Rs.30.36.

Now Indian Oil Company loses 1.43 Rs per litre + cost of transportation of crude oil and refining the price.

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### 6 responses to Calculations of Petrol Prices in India

1. Government should exempt taxes

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2. Neha said on May 16, 2011

Dear Friends we should not blame only UPA govt for this petrol hiking,what opposition party’s are doing simply they are giving statement on the issue,always keep in mind opposition party is the
real hero for common people why means in the constitution mentioned oppposition party should act like police and in the favour of peoples,many of my friends only commenting on rulling govt, it’s appreciatable and they should ask the opposition paty’s also what they are doing?

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3. Petrol prices to rise again by 40 paise, diesel 12 paise; dealers to get more

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4. It is very bad news for common man. This UPA gov should go

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5. UPA would not decrease it. Mamta would crying crocodile.

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6. jay said on July 5, 2012

Friends, I think wastage of fuel is the biggest reason behind the hike in petrol prices

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