How petrol price calculated in India

Fuel prices have recently hit very high. In past whenever the fuel price was increased 20 paise or 30 paise there would be struggle explode

But now a days, the new decision on fuel price has been implemented by the government, the private sector will announce the petrol price on day to day basis.

Due to daily announcement of fuel price, people forgot about the petrol price. As a result there is a huge hike in fuel price as it touch the peak

So, the government should take necessary steps regarding fuel price hike. The government should decide the fuel price and get back the authority of deciding petrol price by the private sector.

Credit: IOC

Approximate Calculation of petrol price in Delhi on (4th September 2018):

• International Price of Crude Oil with Ocean Freight (as on 4th September 2018) is 79.93 $ or Rs 5700 per Barrel

• One Barrel of Crude Oil is equal to 159 litre

• Crude Oil per liter price is  Rs 35.89 per Litre

• Refinery Processing, Entry Tax, OMC Margin, Freight Cost is 3.45 per litre

• Cost after refining is Rs 39.34 per Litre

• Excise Duty Tax by Central government is Rs 19.48 per litre

• Petrol Pump Dealers Commission is Rs 3.63 per litre

• Additional:VAT (Varies from State to State - 27% on Petrol & 16.75% on Diesel + 25p as Pollution Cess with Surcharge) is Rs 16.86 per litre

• Final Retail Price as on 4th September 2018 is Rs 79.31 per Litre