8/6/2018 Petrol, Diesel Price Calculator of 2018 with Tax Break Up in India

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Know how is Fuel Cost to Consumer Computed. Petrol and

Diesel Prices in 2018 on its Peak
Date: June 3, 2018

Fuel Prices are its Peak high in both Petrol and

Diesel of Recent Times. Know how Fuel Prices
are Calculated in 2018
Last updated on 3rd June 2018

Fuel Price Calculation in 2018

Petrol and Diesel Prices have steadily been
increasing after daily price revisions
Been - that Fuel Prices in India are excluded from
GST Framework by the Government of India, and
despite of slight cut in Excise Duty - due to
International Crude prices on its recent highs - Petrol
and Diesel Prices are also on its peak
Some of the reasons of Price Hike in last 15
Months
1. Hike in Crude Oil Prices from 45$ / Barrel to 76.8 $
/ Barrel
2. Increase in Petrol Pump Commissions by almost Rs 1 per Litre in Petrol and Diesel
3. Marginal Increase in Profit Margins of OMC, Refinery or will say in Government language as Better Price
Discovery as Basic Cost of Fuel after Refinery
4. After Budget 2018 - Government First Slashed Excise Duty on Petrol and Diesel by Rs 2 per Litre and then further
by Rs 6 per Litre - but hang on - Road Cess of Rs 8 per Litre been introduced now - effectively means on papers
lower Excise Duty is shown but no change in Fuel Prices

Calculating Crude Oil Cost - Petrol & Diesel - 2018

If you reading Internationally, the price of crude Oil hovers at around 71 Dollar and Rupee has also gained Strong in
Recent Tines
On Importing Oil - Barrel Cost + 1.5$ Ocean Freight of needs to be paid - effectively implying - 78.3 $ per barrel as
import cost. This is Equivalent to Rs 5245 in INR (keeping exchange rate at Rs. 67 / USD + Ocean Freight )
» 1 barrel of crude Oil is Equivalent to around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 5245 / 159 = Rs 32.98 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in New Delhi - (3rd June 2018)

Diesel Price
Petrol Price *
Calculation *
International Price of Crude Oil with Ocean Freight (as on 78.3 $ or Rs 5245 per 78.3 $ or Rs 5245 per
3rd June 2018) Barrel Barrel
1 Barrel of Crude Oil 159 Litre 159 Litre
Crude Oil - Cost per Litre Rs 32.98 per Litre Rs 32.98 per Litre

Basic OMC Cost Calculation *

Entry Tax, Refinery Processing, Landing Cost & Other
Rs 2.1 per Litre Rs 5.23 per Litre
Operational Costs along with Margins
OMC Margin, Transportation, Freight cost Rs 3.31 per Litre Rs 2.87 per Litre
Basic Cost of Fuel after Refining Cost Rs 38.39 per Litre Rs 41.08 per Litre

Additional: Excise Duty + Road Cess as Charged by Central Rs 15.33 / Lit on

Rs 19.48 / Litre on Petrol
Government Diesel
Pricing Charged to Dealers before VAT Rs 57.87 per Litre Rs 56.41 per Litre

Calculating Dealer Retail Price - Base Location Delhi

Commission to Petrol Pump Dealers Rs 3.63 per Litre Rs 2.53 per Litre
Fuel Cost Before VAT (rounded off for
Rs 61.50 per Litre Rs 58.94 per Litre
approximation)

Additional:VAT (Varies from State to State - 27% on Petrol Rs 16.61 / Lit on Petrol Rs 10.17 / Litre on

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8/6/2018 Petrol, Diesel Price Calculator of 2018 with Tax Break Up in India
& 16.75% on Diesel + 25p as Pollution Cess with Diesel
Surcharge)
Final Retail Price as on 3rd June 2018 -( calculation) Rs 78.11 per Litre Rs 69.11 per Litre

* - Prices as on 3rd June 2018, approx cost for Basic OMC Cost calculation

Very Important: The Petrol been Sold in India from

End 2017 has 10% of Ethanol been Mixed with Petrol.
Been Ethanol is a natural Fuel (as made from Sugar
and starch) and very well can be mixed with Petrol
without any changes and also has no PM (Particulate
Material) Pollution.
However - the catch is Ethanol is priced at just Rs
40.85 per Litre, but is mixed in Petrol and the given
rate is combined rate as been sold to consumer
It means that if your car go for petrol Tank Full of say
30 Litres - then in actual your car will get 27 Litre
Petrol and 3 Litre Ethanol - but the rate charged
would be the price of Petrol only - means you have to
pay price of 30 Litre Petrol.
Also - there is slight a caution to Car Owners that they
should ensure that Water does not come in contact
with Petrol by any chance during Car Wash or Fuel
Refill. If you going for Fuel refill during Monsoon and a
small contact of water will lead Ethanol to break as
separate layer against Petrol and this will end up
giving Jerks making the car difficult to even start with.

Had it been ideal world - we would have ended up with Fuel Cost of Rs 40 - 42 per Litre for Petrol and Diesel. Irony
is - we are paying more Taxes than the Cost of Obtaining Petrol Fuel in some states

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 is as below

Tax in November
Tax in August 2017 Tax in June 2018
2014
Excise Duty on Petrol Rs 9.20 per Litre Rs 21.48 per Litre Rs 19.48 per Litre
Excise Duty on Diesel Rs 3.46 per Litre Rs 17.33 per Litre Rs 15.33 per Litre
VAT on Basic Price on Petrol 20% on Basic Price 27% on Basic Price 27% on Basic Price
16.75% on Diesel + 25p 16.75% on Diesel + 25p
VAT on Basic Price on Diesel 12.5% on Basic Price
Cess Cess

Disclaimer :- Excise including Road Cess, Fuel Price Calculation done in Delhi, VAT rates in Delhi. Excise rates
Standard Pan India

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 36.09 per Litre (46%) Rs 78.11 per Litre

Diesel in Delhi Rs 25.51 per Litre (36%) Rs 69.11 per Litre

Basis - June 2018 Prices in Delhi

It means for Every Litre of Petrol you are filling -- you are paying a steep tax of Rs 36.09 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 Taxes (VAT with additional Surcharge). This takes Taxes (Excise+VAT+Surcharge) in Mumbai to almost
Rs 43 per Litre alone in Petrol - taking to almost close to 55% Taxes on Filling a Litre of Petrol

Know More -
» Why Petrol and Diesel Prices are High in India - Reasons for High Petrol and diesel Price in India
» Taxes on Buying Cars - Know Taxes Paid as Ownership Cost of Car
» Petrol or Diesel Cars - Guide on Which Car should you Buy
» Hatchback Cars with Best Mileage
» Sedan Cars with Best Mileage
» SUV Cars with Best Mileage

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8/6/2018 Petrol, Diesel Price Calculator of 2018 with Tax Break Up in India

Fuel Prices in India - based on Prices in June 2018

Petrol Price / Litre^ Diesel Price / Litre^

New Delhi Rs 78.11 Rs 69.11
Mumbai Rs 85.92 Rs 73.58
Chennai Rs 81.09 Rs 72.97
Kolkata Rs 80.75 Rs 71.66
Noida Rs 78.62 Rs 69.31
Gurgaon Rs 78.63 Rs 70.01
Gandhinagar (Gujarat) Rs 77.40 Rs 74.28
Bangalore Rs 79.39 Rs 70.3
Goa Rs 71.98 Rs 70.34
Port Blair Rs 67.29 Rs 64.25

^ - Prices as on 3rd June 2018

Wondering for Fuel Price Difference. One of the Major Reasons for Discrepancy in Fuel Prices across States is that
no GST Framework on Petroleum Prices and still VAT at differential rates been charged along with additional
surcharge in some states
» VAT Rate Difference - VAT rate varies from state to state and to give instance on Petrol is highest in Maharashtra,
Punjab, Telangana, Kerala, TamilNadu while some states like Goa have one among lowest VAT
All this leads to different Prices of Petroleum Products in Various States and Union Territories in India

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