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What Is The Breakdown of PETROL

The document outlines the breakdown of petrol prices in India and how much is comprised of taxes. It states that the cost of crude oil per barrel is around $52 which equals Rs. 3,485 per barrel or Rs. 21.92 per liter. Additional refining, transportation and dealer costs bring the pre-tax fuel cost to Rs. 51.69 per liter. Taxes, including excise duty of Rs. 21.48/liter and 27% VAT, account for Rs. 37 per liter, comprising over 50% of the final retail price of Rs. 70.6 per liter.

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Vivek Raj
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64 views2 pages

What Is The Breakdown of PETROL

The document outlines the breakdown of petrol prices in India and how much is comprised of taxes. It states that the cost of crude oil per barrel is around $52 which equals Rs. 3,485 per barrel or Rs. 21.92 per liter. Additional refining, transportation and dealer costs bring the pre-tax fuel cost to Rs. 51.69 per liter. Taxes, including excise duty of Rs. 21.48/liter and 27% VAT, account for Rs. 37 per liter, comprising over 50% of the final retail price of Rs. 70.6 per liter.

Uploaded by

Vivek Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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What is the breakdown of petrol price in India, and how much of it is taxes?

If youre reading Internationally, the price of crude Oil hovers at 50 Dollar

On Importing Oil - Barrel Cost + Ocean Freight at 2 Dollar needs to be paid - effectively
implying - 52 $ per barrel as import cost. This is Equivalent to Rs 3485 in INR (keeping
exchange rate at Rs. 67.04 / USD )

1 barrel of crude Oil is Equivalent to around 159 Litres of Crude Oil

Raw Crude Oil in Indian Currency: Rs. 3486 / 159 = Rs 21.92 per Litre approx

Basic OMC Cost Calculation-

Entry Tax (if appl.), Refinery Processing, Margin & Landing Cost from Refinery
to OMC - (Refinery Costs)-

Rs 3.39 per Litre

OMC Margin, Transportation, Freight, Landing to Dealers-

Rs 2.56 per Litre

Basic Cost of Fuel after Refining Cost-

Rs 27.91 per Litre

Additional: Excise Duty as on 16th June 2016-

Rs 21.48 / Litre on Petrol

Pricing Charged to Dealers before VAT

Rs 49.39 per Litre

Calculating Dealer Retail Price -

Base Location Delhi-

Commission to Petrol Pump Dealers-

Rs 2.30 per Litre

Fuel Cost Before VAT (rounded off for approximation)

Rs 51.69 per Litre

Additional:VAT (Varies from State to State - 27% on Petrol & 18% on Diesel +
25p as Pollution Cess with Surcharge)

Rs 13.96 / Lit on Petrol


Final Retail Price as on 16th June, 2016 -(calculation)

Rs 65.65 per Litre

How much taxes are included in the petrol price in India?


Hi,

Here is the composition of Petrol price per litre :

Crude Oil cost - Rs.25 per litre

(1 Barrel consisting of 159 litres of Crude oil costs Rs.3970 per Barrel)

Refining cost per litre - Rs.3.62

Transportation cost per litre - Rs.2.72

Excise duty (as on 1st Jan 2017) per litre - Rs.21.48

Commission to Dealers per litre - Rs.2.58

VAT (27%, varies from State to State) - Rs.15.01

FINAL RETAIL price as of 1st Jan 2017 per litre - Rs. 70.6

SO the tax percentage is a little more than the cost of acquiring it. That is, Rs.37 per litre
approximately.

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