About Fuel Prices

The fuel oil prices in india is not the same across the various states and cities, its mainly because of the tax components at different levels. To give you a broad picture, The central goverment imposes diffrent excise and taxes on petroleum products, which results 25 % of the total cost. Additionally State goverments adding the local taxes along with central goverment taxes and duties, which is around 20 %. Hence we are paying cumulative tax nearly about 38 to 45 % to both the gverments. Also Petroleum prices vary between district to district across the state, based on the local taxes and distances.

Global fuel oil / crude oil price is calculated based on the worldwide supply vs consumption. worldwide oil manufacturers sell their crude oil to, much large refining companies/consumers at the trading price. Actual Selling price is fixed based on refinery and Brent crude’s daily price along with transportation taxes and duties.

Generally. One barrel or drum of crude oil has 160 liters. of crude. Initially, the crude oil drums/tanks are transported to Indian refineries ( companies ) for segregation of oil. Then parent Crude oil is then separated into other sub products like diesel, petrol, kerosene, xylene, etc., in the process of distillation. Now the process cost, storage cost, transportation cost, taxes, duties and dealer commissions are included in the prices we pay. That is the way prices are fixed in India.

Frequently asked questions specifically about fuel prices in India

Q : What is the retail price of fuel made up of?

A : The price of fuel at the retail station comprises the product cost, central government excise and taxes, State government taxes and operating costs and margin.

Q : Who controls pump prices In India?

A : Petrol & Diesel prices have been deregulated by Indian Government in June 2010 and Oct 2014, respectively

Q : Why have fuel prices increased compared to previous years?

A : The cost of crude oil and refined product have risen and therefore fuel prices have increased. The cost of crude oil and refined product are influenced by a number of factors, such as increasing oil demand, limits in refining capacity, seasonal demand for product and extreme weather events that have affected refineries or fuel supplies.

Q : Why do fuel prices vary in different countries?

A : The price of fuel in different countries is affected by:

  • Cost of buying finished product in the country (country supplies usually cheaper than importing product)
  • Government excise and tax rates
  • Government subsidies for fuel
  • Currency fluctuations

Q : How does the US exchange rate affect fuel prices in my country?

A : Since the world's major crude oil market is generally traded in US dollars, any variation between a country's exchange rate and the US dollar will impact the cost of buying crude oil in that country.

How Fuel Prices are calculated?

Sr.No. Elements Units
1 C&F (Cost & Freight) Price $/bbl 60.87
2 Average Exchange rate ₹/$ 64.42
3 Refinery Transfer Price (RTP) on landed cost basis for BS IV Petrol(Price Paid by the Oil Marketing Companies to Refineries) ₹/Ltr 24.89
4 Price Charged to Dealers (excluding Excise Duty and VAT) ₹/Ltr 25.95
5 Add : Excise Duty @ Rs.21.48/Ltr ₹/Ltr 21.48
6 Add : Dealer Commission ₹/Ltr 2.54
7 Add : VAT (including VAT on Dealer Commission) applicable @27% ₹/Ltr 13.49
8 Retail Selling Price (Rounded) ₹/Ltr 63.46
Note: $ = Dollar, bbl = Barrel, ₹ = Rupee, Ltr = Litre