Update Petroleum Hike in India: An Enquiry
September 04, 2018
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Introduction
Petrol and Petroleum Prices are increasing day by day in India. Even a little hike in these products reflects great negative effects to the economy of the people of India. Here I am trying to find the facts and myths regarding this issue.
Crude Oil
It is the source of Petroleum products. According to the Petroleum rules in India, the direct import of Gasoline is prohibited. Instead we are importing crude oil and it refined to Petroleum products. The crude oil sources in India are as follows...
Ref: Click here
The Consuption of crude oil as follows...
Oil and Gas Companies in India
Oil and Gas companies in India are as follows..
Expenditure for Petrol
One Barrel of Crude Oil Costs around 101$. Check Price. (One Barrel = 160L)
Processing Crude Oil -> Refining -> Petrol -> Refining Margin, Transportation, Vendor Commission = Production Cost of Petrol (One barrel of Crude Oil Yields 150 L of Petrol)
Avg. Value of dollar this year = 62.10 INR
Avg. Price for crude Oil this year = 101.46 $
Refining, Margin, Transportation Charge, Commission per Barrel = 672 INR (aapx.)
150 L of Petrol = 101.46 x 62.10 + 672 = 7003.71 INR
For 1 L Petrol = 7003.71 / 150 = 46.70
(The Cost depends on factors like Quality of Crude oil, refinery. However changes in it would not greatly affect product price.) Ref: Click here.
After great Subsidies and Taxes of the Central and State Governments customer gets at a price of 75 INR (appx.) for 1 L of Petrol.
Price Comparison
These are the prices of Petrol in other Countries
At last one question
WHY DON'T WE CHANGE THE ACT AND IMPORT PETROL AND/OR PRODUCTS FROM CHEAPLY AVAILABLE COUNTRIES?
The refinery companies can process crude oil which produced locally. For rest of Indian needs we can import from other countries.