If the cost price of petrol per litre is Rs 58.90, following is the break up of cost calculated by the Indian 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
Based on the above calculation the price of crude is only around 36-40% of the total price that we pay at the pumps.
Government Basic oil Price calculation –
Considering that the current price of crude oil is $107 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 = Rs.30.36.
Now Indian Oil Company loses 1.43 Rs per litre + cost of transportation of crude oil and refining the price.
If the oil companies are at a loss, then how is it that they declare high dividends for their share holders?
In the year 2008-2009 Hindustan petroleum company had a net profit of Rs: 574.5 crores, similarly in 2009-10 Indian oil had a profit of Rs: 5556.77 crores and Bharat petroleum had a profit of Rs; 5015.5 crores. If these companies had incurred a loss, then where from, they got this profit?
IOC, gifted their current employees and retired employees gold coins. So then, how can a company that is projected to suffer losses of several crores per day give such large gifts?
The government is just putting this picture of loss. Its true that these 4 products, namely petrol, diesel, kerosene and LPG are given on subsidy and the company does suffer a loss on them. But these companies produce other products and by products of the refining process such benzene and toluene etc, which makes huge profits for them. Hence, the company on the overall is not at a loss but make profits.
Moreover, the governement’s taxes on fuel accounts for more than 50% of the cost. The government is making a fool of all of us.
Petrol prices in other countries
America Rs 43.7 per litre
China Rs 47.5 per litre
Pakistan Rs 43.29 per litre
Russia Rs 41.96 per litre
Malaysia Rs 26.78 per litre
Canada Rs 45.08 per litre
Venezuela Rs 0.71 per litre
India Rs 65 per litre
World market crude oil is not the reason for this. It’s all gain for Indian Government and private oil companies?