This document provides a summary of how petrol and diesel prices in India are calculated based on international crude oil prices and taxes. It explains that crude oil costs approximately $37 per barrel to import into India. After refining and distribution costs, the basic cost of petrol is Rs. 25.5 per liter and diesel is Rs. 23.11 per liter. However, excise duties of Rs. 19.73 per liter for petrol and Rs. 13.83 per liter for diesel significantly increase fuel prices. Additionally, state VAT taxes of 25% for petrol and 16.6% for diesel plus other charges result in final retail prices of Rs. 59.35 per liter for petrol and Rs. 45.03 per liter for diesel

1. 1/15/2016 Petrol, Diesel Price Calculator of 2016 with Tax Break Up in India
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Petrol Price *
Diesel Price
Calculation *
International Price of Crude Oil with Ocean Freight (as on
1st January 2016)
37$ or Rs 2440 per
Barrel
37$ or Rs 2440 per
Barrel
1 Barrel of Crude Oil 159 Litre 159 Litre
Crude Oil ­ Cost per Litre Rs 15.36 per Litre Rs 15.36 per Litre
Basic OMC Cost Calculation
Entry Tax on Crude Oil (if applicable), Refinery
Processing, Margin & Transportation Cost ­ (Refinery
Costs)
Rs 7.1 per Litre Rs 3.33 per Litre
OMC Margin, Transportation, Freight, Landing to Dealers Rs 3.04 per Litre Rs 4.42 per Litre
Basic Cost of Fuel after Refining Cost Rs 25.5 per Litre Rs 23.11 per Litre
Additional: Excise Duty as on 2nd January 2016
Rs 19.73 / Litre on
Petrol
Rs 13.83 / Lit on
Diesel
Pricing Charged to Dealers before VAT Rs 45.23 per Litre Rs 36.94 per Litre
Calculating Dealer Retail Price ­ Base Location Delhi
Commission to Petrol Pump Dealers Rs 2.25 per Litre Rs 1.43 per Litre
Fuel Cost Before VAT (rounded off for
approximation)
Rs 47.48 per Litre Rs 38.37 per Litre
Know how is Fuel Cost to Consumer Computed. Petrol and
Diesel Prices in 2016
Date: December 18, 2015
International Crude Prices is at its all time Low in
2016 in last 5 yrs. Know Computation of Petrol
and Diesel Prices in India
Last Updated in January 2016
Fuel Price Calculation in 2016
With Fuel Prices now getting changed Frequently,
know how is fuel prices computed in India
Calculating Crude Oil Cost ­
Petrol & Diesel ­ 2016
If you reading Internationally, the price of crude Oil
hovers at 35 Dollar
On Importing Oil ­ Barrel Cost + Ocean Freight at 2
Dollar needs to be paid ­ effectively implying ­ 37$
per barrel as import cost. This is Equivalent to Rs
2440 in INR (keeping exchange rate at Rs. 66 /
USD )
» 1 barrel of crude Oil is Equivalent to around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 2440 / 159 = Rs 15.36 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in New Delhi ­ 2016

2. 1/15/2016 Petrol, Diesel Price Calculator of 2016 with Tax Break Up in India
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Additional:VAT (Varies from State to State ­ 25% on
Petrol & 16.6% on Diesel + 25p as Pollution Cess with
Surcharge)
Rs 11.87 / Lit on Petrol Rs 6.66 on Diesel
Final Retail Price as on January 3, 2016 ­
(calculation)
Rs 59.35 per Lit Rs 45.03 per Litre
Tax in November 2014 Tax in January 2016
Excise Duty on Petrol Rs 9.20 per Litre Rs 19.73 per Litre
Excise Duty on Diesel Rs 3.46 per Litre Rs 13.83 per Litre
VAT on Basic Price on Petrol 20% on Basic Price 25% on Basic Price
VAT on Basic Price on Diesel 12.5% on Basic Price 16.6% on Diesel + 25p Cess
* ­ Prices as on 2nd January 2016
Had it been ideal world ­ we would have ended up with Fuel Cost of less than 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.
» 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. 19.73 /Litre for Petrol and Rs 13.83 /Litre on Diesel (as in
January 2016 ­There has been Multiple Excise Hikes in 2015) ­ goes to Central Government. ­ which has
increased gradually and are now almost more than 2x Times for Petrol and 3x Times for Diesel
» VAT on Gross Price (on Price + Excise Duty) * (@ 25% on Petrol, 16.6% on Diesel) ­ Rs. 12 on Petrol, Rs 6.81
for Diesel ­ goes to State Government. VAT also increased in Delhi by Aam Aadmi Party/. Earlier it was 20% on
Petrol and 12.5% on Diesel
Disclaimer :­ Approximate Closest Figures Used, Fuel Price Calculation done in Delhi