Calculations of Petrol Prices in India
May 16, 2011 in Automobiles
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.