Calculations of Petrol Prices in India
September 23, 2008 by Articles2u
Filed under Vehicles
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 $107 (on September 22) per barell, cost of per barrel in RS will be 107*45.40(1$=Rs45.40) = 4858.
One barell consists of approximately 160 litres. So Price of crude oil per litre will be 4858/160 = 30.36.
Now Indian Oil Company loses 1.44 Rs per litre + cost of transportation of crude oil and refining the price.
Maybe I am wrong but I feel the Govt should limit the petrol & diesel quota to pvt vehicle (cars & bikes) owners. Thus reducing the consumption in the first place. Lesser demand, lesser prices and lesser pollution. This will force people to use public transport services where many people can travel in less fuel rather than a single person in a car using more fuel. It will lesser the demand of fuel & force the oil rich countries to reduce the fuel prices.