CHECK AS TO HOW PETROL AND DIESEL PRICES ARE WORKED OUT IN INDIA AND THAT IS THE REASON FINANCE MINISTER KEPT EXCISE DUTY IMPOSED ON PETROLEUM PRODUCTS OUT SIDE THE SCOPE OF GST.
LET US KNOW THE CALCULATION OF THE SECRET OF SUCCESS OF MR.ARUN JAITELY
Know
how is Fuel Cost to Consumer Computed. Petrol and Diesel Prices in 2017
Date: June 16, 2017
Start of 2017 happens with Price hike of Petrol and Diesel. Know
Computation of Petrol and Diesel Prices in India
Fuel Price Calculation in 2017
Here comes the Last Weekly cut of Fuel Prices
in India
From 16th June 2017 Onwards - Prices to be
changed on Daily Basis.
If you are hoping for a Steep price cut on
Fuel Prices due to GST - then you are mistaken, as Fuel Prices in India are
excluded from GST Framework by the Government of India. Crude Oil movements
will not impact daily price movement to be done at 6am the following day
Calculating
Crude Oil Cost - Petrol & Diesel - 2017
If you reading Internationally, the price of
crude Oil hovers at around 45 Dollar and Rupee has also gained Strong in
Recent Tines
On Importing Oil - Barrel Cost + Ocean Freight
at 2 Dollar needs to be paid - effectively implying - 47 $ per barrel as
import cost. This is Equivalent to Rs 3050 in INR (keeping exchange rate
at Rs. 64.9 / USD )
» 1 barrel of crude Oil is Equivalent to
around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 3040 /
159 = Rs 19.12 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in
New Delhi - (16th June 2017)
Petrol Price *
|
Diesel Price
Calculation *
|
|
International Price of
Crude Oil with Ocean Freight (as on 16th June 2017)
|
47$ or Rs 3050 per
Barrel
|
47$ or Rs 3050 per
Barrel
|
1 Barrel of Crude Oil
|
159 Litre
|
159 Litre
|
Crude Oil - Cost
per Litre
|
Rs 19.18 per
Litre
|
Rs 19.18 per
Litre
|
Basic OMC Cost
Calculation
|
||
Entry Tax, Refinery
Processing, Landing Cost & Other Operational Costs along with Margins
|
Rs 5.65 per Litre
|
Rs 5.65 per Litre
|
OMC Margin,
Transportation, Freight cost
|
Rs 2.68 per Litre
|
Rs 2.68 per Litre
|
Basic Cost of Fuel
after Refining Cost
|
Rs 27.51 per
Litre
|
Rs 27.48 per
Litre
|
Additional: Excise
Duty as Charged by Central Government
|
Rs 21.48 / Litre on
Petrol
|
Rs 17.33 / Lit on
Diesel
|
Pricing Charged to
Dealers before VAT
|
Rs 48.99 per Litre
|
Rs 44.81 per
Litre
|
Calculating Dealer
Retail Price - Base Location Delhi
|
||
Commission to Petrol
Pump Dealers
|
Rs 2.57 per Litre
|
Rs 1.65 per Litre
|
Fuel Cost Before VAT
(rounded off for approximation)
|
Rs 51.56 per Litre
|
Rs 46.46 per
Litre
|
Rs 13.92 / Lit on
Petrol
|
Rs 8.18 /
Litre on Diesel
|
|
Final Retail Price as
on 16th June 2017 -(calculation)
|
Rs
65.48 per Litre
|
Rs
54.49 per Litre
|
*
- Prices as on 16th June 2017
Had
it been ideal world - we would have ended up with Fuel Cost of Rs 30 per Litre
for Petrol and Diesel. Irony is - we are paying more Taxes than the
Cost of Obtaining Petrol Fuel
Taxation
Scenario on Petrol and Diesel Fuel
Do you always Wondered that Despite of Falling
International Crude Oil Costs, Petrol and Diesel Prices in India are on higher
Side
Apart from Crude Oil Rates - There are 2
Important Factors which determine the Fuel Cost - VAT and Excise Duty - which
has increased significantly in last 15 months.
Tax in November 2014
|
Tax in June 2017
|
|
Excise Duty on
Petrol
|
Rs 9.20 per Litre
|
Rs 21.48 per Litre
|
Excise Duty on
Diesel
|
Rs 3.46 per Litre
|
Rs 17.33 per Litre
|
VAT on Basic Price on
Petrol
|
20% on Basic Price
|
27% on Basic Price
|
VAT on Basic Price on
Diesel
|
12.5% on Basic Price
|
16.75% on Diesel + 25p
Cess
|
» Excise Duty - Excise Duty was Rs 9.20/Lit on
Petrol and Rs 3.46/Lit on Diesel on 1st November 2014
Present Excise Duty on
Petroleum Products is Rs. 21.48 /Litre for Petrol and Rs 17.33 /Litre on
Diesel (as in June 2017 -There has been Multiple Excise Hikes in 2015
and in beginning of 2016 too. However - no Excise Duty Hike happened in more
than 15 months) - goes to Central Government - which has increased
gradually and are now almost more than 2x Times for Petrol and 4.5x Times for
Diesel
» VAT on Gross Price (on Price + Excise Duty) * (@ 27% on
Petrol, 16.75% on Diesel + 25p Cess) - goes to State Government. VAT also increased
in Delhi by Aam Aadmi Party in 2016. Earlier it was 20% on Petrol and 12.5% on
Diesel
Disclaimer
:- Approximate Closest
Figures Used, Fuel Price Calculation done in Delhi
Taxes Paid for Obtaining Fuel
Below are Taxes Paid for Obtaining Fuel in
Delhi (Scenario is not much different in other cities too - almost similar or
even higher taxes charged)
Tax Paid for Obtaining
Fuel
|
Total Cost of Fuel
|
|
Petrol in Delhi
|
Rs 35.4 per Litre
(54%)
|
Rs 65.48 per Litre
|
Diesel in Delhi
|
Rs 25.51 per Litre
(47%)
|
Rs 54.49 per
Litre
|
Basis
- June 2017 Prices in Delhi
It means for Every Litre of Petrol you are
filling -- you are paying a steep tax of Rs 35.4 per Litre in Delhi to State
and Central Government. Its even higher in Other cities
If
you are Staying in Mumbai -
you are paying highest Taxes on Petrol Prices in India. Reason Mumbai has
highest State Level VAT of 32.04% + Rs 2 as Sales Tax + Rs 1.5 as additional
Surcharge. This takes Taxes in Mumbai to more than Rs 42 per Litre alone -
taking to almost close to 60% Taxes on Filling a Litre of Petrol
Fuel
Prices in India - based on Prices in June 2017
Petrol Price / Litre^
|
Diesel Price / Litre^
|
|
New Delhi
|
Rs 65.48
|
Rs 54.49
|
Mumbai
|
Rs 76.7
|
Rs 59.9
|
Chennai
|
Rs 68.02
|
Rs 57.41
|
Kolkata
|
Rs 68.03
|
Rs 56.65
|
Noida
|
Rs 68.49
|
Rs 56.09
|
Gurgaon
|
Rs 65.51
|
Rs 54.8
|
^
- Prices as on 16th June 2017
Wondering for Fuel Price Difference. One of
the Major Reasons for Discrepency in Fuel Prices across States is
» VAT Rate Difference - VAT rate varies from
state to state and to give instance on Petrol in Rajasthan is 30%, MP is 31 % +
Rs 1 additional cess, Haryana is 25%, UP is Rs 16.74 per Litre, Delhi is now
27%. VAT on diesel in Rajasthan is 22%, MP is 27%, Haryana is 16.4%, UP is Rs
9.41/Litre per Litre, Delhi is now 16.75% + 25 paise cess
» Mumbai has one among highest Prices as VAT
in Mumbai (Maharashtra), on Petrol is one among highest in India with 32.04%
VAT + Rs 2 as Sales Tax + Rs 1.5 as additional Surcharge on VAT - making Petrol
Prices higher by more than Rs 6 per Litre as against Petrol Prices in Capital,
Delhi.
All this leads to different Prices of
Petroleum Products in Various States and Union Territories in India
Date: June 16, 2017
Start of 2017 happens with Price hike of Petrol and Diesel. Know
Computation of Petrol and Diesel Prices in India
Fuel Price Calculation in 2017
Here comes the Last Weekly cut of Fuel Prices
in India
From 16th June 2017 Onwards - Prices to be
changed on Daily Basis.
If you are hoping for a Steep price cut on
Fuel Prices due to GST - then you are mistaken, as Fuel Prices in India are
excluded from GST Framework by the Government of India. Crude Oil movements
will not impact daily price movement to be done at 6am the following day
Calculating
Crude Oil Cost - Petrol & Diesel - 2017
If you reading Internationally, the price of
crude Oil hovers at around 45 Dollar and Rupee has also gained Strong in
Recent Tines
On Importing Oil - Barrel Cost + Ocean Freight
at 2 Dollar needs to be paid - effectively implying - 47 $ per barrel as
import cost. This is Equivalent to Rs 3050 in INR (keeping exchange rate
at Rs. 64.9 / USD )
» 1 barrel of crude Oil is Equivalent to
around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 3040 /
159 = Rs 19.12 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in
New Delhi - (16th June 2017)
Petrol Price *
|
Diesel Price
Calculation *
|
|
International Price of
Crude Oil with Ocean Freight (as on 16th June 2017)
|
47$ or Rs 3050 per
Barrel
|
47$ or Rs 3050 per
Barrel
|
1 Barrel of Crude Oil
|
159 Litre
|
159 Litre
|
Crude Oil - Cost
per Litre
|
Rs 19.18 per
Litre
|
Rs 19.18 per
Litre
|
Basic OMC Cost
Calculation
|
||
Entry Tax, Refinery
Processing, Landing Cost & Other Operational Costs along with Margins
|
Rs 5.65 per Litre
|
Rs 5.65 per Litre
|
OMC Margin,
Transportation, Freight cost
|
Rs 2.68 per Litre
|
Rs 2.68 per Litre
|
Basic Cost of Fuel
after Refining Cost
|
Rs 27.51 per
Litre
|
Rs 27.48 per
Litre
|
Additional: Excise
Duty as Charged by Central Government
|
Rs 21.48 / Litre on
Petrol
|
Rs 17.33 / Lit on
Diesel
|
Pricing Charged to
Dealers before VAT
|
Rs 48.99 per Litre
|
Rs 44.81 per
Litre
|
Calculating Dealer
Retail Price - Base Location Delhi
|
||
Commission to Petrol
Pump Dealers
|
Rs 2.57 per Litre
|
Rs 1.65 per Litre
|
Fuel Cost Before VAT
(rounded off for approximation)
|
Rs 51.56 per Litre
|
Rs 46.46 per
Litre
|
Additional:VAT (Varies
from State to State - 27% on Petrol & 16.75% on Diesel + 25p as Pollution
Cess with Surcharge)
|
Rs 13.92 / Lit on
Petrol
|
Rs 8.18 /
Litre on Diesel
|
Final Retail Price as
on 16th June 2017 -(calculation)
|
Rs
65.48 per Litre
|
Rs
54.49 per Litre
|
*
- Prices as on 16th June 2017
Had
it been ideal world - we would have ended up with Fuel Cost of Rs 30 per Litre
for Petrol and Diesel. Irony is - we are paying more Taxes than the
Cost of Obtaining Petrol Fuel
Taxation
Scenario on Petrol and Diesel Fuel
Do you always Wondered that Despite of Falling
International Crude Oil Costs, Petrol and Diesel Prices in India are on higher
Side
Apart from Crude Oil Rates - There are 2
Important Factors which determine the Fuel Cost - VAT and Excise Duty - which
has increased significantly in last 15 months.
Tax in November 2014
|
Tax in June 2017
|
|
Excise Duty on
Petrol
|
Rs 9.20 per Litre
|
Rs 21.48 per Litre
|
Excise Duty on
Diesel
|
Rs 3.46 per Litre
|
Rs 17.33 per Litre
|
VAT on Basic Price on
Petrol
|
20% on Basic Price
|
27% on Basic Price
|
VAT on Basic Price on
Diesel
|
12.5% on Basic Price
|
16.75% on Diesel + 25p
Cess
|
» Excise Duty - Excise Duty was Rs 9.20/Lit on
Petrol and Rs 3.46/Lit on Diesel on 1st November 2014
Present Excise Duty on
Petroleum Products is Rs. 21.48 /Litre for Petrol and Rs 17.33 /Litre on
Diesel (as in June 2017 -There has been Multiple Excise Hikes in 2015
and in beginning of 2016 too. However - no Excise Duty Hike happened in more
than 15 months) - goes to Central Government - which has increased
gradually and are now almost more than 2x Times for Petrol and 4.5x Times for
Diesel
» VAT on Gross Price (on Price + Excise Duty) * (@ 27% on
Petrol, 16.75% on Diesel + 25p Cess) - goes to State Government. VAT also increased
in Delhi by Aam Aadmi Party in 2016. Earlier it was 20% on Petrol and 12.5% on
Diesel
Disclaimer
:- Approximate Closest
Figures Used, Fuel Price Calculation done in Delhi
Taxes Paid for Obtaining Fuel
Below are Taxes Paid for Obtaining Fuel in
Delhi (Scenario is not much different in other cities too - almost similar or
even higher taxes charged)
Tax Paid for Obtaining
Fuel
|
Total Cost of Fuel
|
|
Petrol in Delhi
|
Rs 35.4 per Litre
(54%)
|
Rs 65.48 per Litre
|
Diesel in Delhi
|
Rs 25.51 per Litre
(47%)
|
Rs 54.49 per
Litre
|
Basis
- June 2017 Prices in Delhi
It means for Every Litre of Petrol you are
filling -- you are paying a steep tax of Rs 35.4 per Litre in Delhi to State
and Central Government. Its even higher in Other cities
If
you are Staying in Mumbai -
you are paying highest Taxes on Petrol Prices in India. Reason Mumbai has
highest State Level VAT of 32.04% + Rs 2 as Sales Tax + Rs 1.5 as additional
Surcharge. This takes Taxes in Mumbai to more than Rs 42 per Litre alone -
taking to almost close to 60% Taxes on Filling a Litre of Petrol
Know More -
» Taxes on Buying Cars - Know Taxes Paid as Ownership Cost of Car
» Petrol or Diesel Cars - Guide on Which Car should you Buy
Fuel
Prices in India - based on Prices in June 2017
Petrol Price / Litre^
|
Diesel Price / Litre^
|
|
New Delhi
|
Rs 65.48
|
Rs 54.49
|
Mumbai
|
Rs 76.7
|
Rs 59.9
|
Chennai
|
Rs 68.02
|
Rs 57.41
|
Kolkata
|
Rs 68.03
|
Rs 56.65
|
Noida
|
Rs 68.49
|
Rs 56.09
|
Gurgaon
|
Rs 65.51
|
Rs 54.8
|
^
- Prices as on 16th June 2017
Wondering for Fuel Price Difference. One of
the Major Reasons for Discrepency in Fuel Prices across States is
» VAT Rate Difference - VAT rate varies from
state to state and to give instance on Petrol in Rajasthan is 30%, MP is 31 % +
Rs 1 additional cess, Haryana is 25%, UP is Rs 16.74 per Litre, Delhi is now
27%. VAT on diesel in Rajasthan is 22%, MP is 27%, Haryana is 16.4%, UP is Rs
9.41/Litre per Litre, Delhi is now 16.75% + 25 paise cess
» Mumbai has one among highest Prices as VAT
in Mumbai (Maharashtra), on Petrol is one among highest in India with 32.04%
VAT + Rs 2 as Sales Tax + Rs 1.5 as additional Surcharge on VAT - making Petrol
Prices higher by more than Rs 6 per Litre as against Petrol Prices in Capital,
Delhi.
All this leads to different Prices of
Petroleum Products in Various States and Union Territories in India
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