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.
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.
A : Petrol & Diesel prices have been deregulated by Indian Government in June 2010 and Oct 2014, respectively
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.
A : The price of fuel in different countries is affected by:
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.
|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|