Know how is Fuel Cost to Consumer Computed. Petrol and Diesel Prices Calculation Cost in 2020

Date: August 1, 2020

Know how Fuel Prices are Calculated in 2020 including Taxes Paid for each Litre of Petrol and Diesel Fuel

Fuel Price Calculation in 2020

Crude Oil Prices went to its Historic Lows by even going Negative in April 2020, but went steadily going up to almost 40$ per barrel

Calculating Crude Oil Cost - Petrol & Diesel - 2020

Below is Crude Oil Cost Comparison from 1st January 2020 to 1st August 2020

1st January 2020 1st August 2020 International Price of Brent Crude Oil with Ocean Freight (round off) 67$ per Barrel 42.68 $ per Barrel Currency Exchange Rate Rs 71.4 / USD Rs 74.93 / USD Crude Oil in Indian Currency Rs 4784 Rs 3198 1 Barrel of Crude Oil 159 Litre 159 Litre Crude Oil - Cost per Litre Rs 30.08 per Litre Rs 20.11 per Litre Petrol Price - Per Litre (Delhi) Rs 75.14 per Litre Rs 80.43 per Litre Diesel per Litre (Delhi) Rs 67.96 per Litre Rs 73.56 per Litre

Wondering what happened in last 7 to 8 Months where despite Falling Crude Oil Prices you paying higher Fuel Prices

Simplified Calculation Chart for Petrol & Diesel Prices in New Delhi - (as on 1st August 2020)

Petrol Price Calculation* Diesel Price Calculation * Basic OMC Cost Calculation Crude Oil including Ocean Freight Rs 20.11 per Litre Rs 20.11 per Litre Refinery Processing + Refinery Margins + OMC Margin + Freight Cost, Logistics Rs 5.1 per Litre Rs 8.24 per Litre Fuel Price after Processing (Ready to send to Petol Pump) Rs 25.21 per Litre Rs 28.35 per Litre Central Government Taxes & Dealer Commission Additional: Excise Duty + Road Cess as Charged by Central Government

Rs 32.98 / Litre on Petrol Rs 31.83 / Lit on Diesel Commission to Petrol Pump Dealers Rs 3.68 per Litre Rs 2.58 per Litre Fuel Cost Before VAT Cost as on 1st August 2020 Rs 61.87 per Litre Rs 62.76 per Litre VAT Calculation Additional:VAT (30% on Petrol and 16.75% on Diesel. Additional Cess on Diesel) (1st August 2020) Rs 18.56 / Litre on Petrol Rs 10.8 / Litre on Diesel Final Retail Price as on 1st August 2020 in Delhi Rs 80.43 per Litre Rs 73.56 per Litre

VAT Duty Reduction in Diesel on Diesel Fuel: To be noted that Delhi Government rolled back higher excise Duty on Diesel from 30% to 16.75% which less to sharp Rs 8 per Litre fall of Diesel Fuel Prices in Delhi from 1st August 2020

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 47.89 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 25 per Litre for Petrol and Diesel. Irony is - we are paying 2 Times or even 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 2014 Tax in August 2017 Tax in August 2020 Excise Duty on Petrol Rs 9.20 per Litre Rs 21.48 per Litre Rs 32.98 per Litre (incl. Road Cess) Excise Duty on Diesel Rs 3.46 per Litre Rs 17.33 per Litre Rs 31.83 per Litre (incl. Road Cess) VAT on Basic Price on Petrol 20% on Basic Price 27% on Basic Price 30% VAT VAT on Basic Price on Diesel 12.5% on Basic Price 16.75% on Diesel + 25p Cess 16.75% VAT + 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 (August 2020)

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 51.54 per Litre (64%) Rs 80.43 per Litre Diesel in Delhi Rs 42.63 per Litre (58%) Rs 73.56 per Litre

Basis - 1st August 2020 Prices in Delhi

It means for Every Litre of Petrol you are filling -- you are paying a steep tax of Rs 51.54 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) and petrol prices in August 2020 records a high of over Rs 87.19 per Litre. The Excise+VAT+Surcharge in Mumbai is almost the highest making Maharashtra with Highest Fuel Prices in India

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

Fuel Prices in India - based on Prices on 1st August 2020

Petrol Price / Litre^ Diesel Price / Litre^ New Delhi Rs 80.43 Rs 73.56 Mumbai Rs 87.19 Rs 80.11 Chennai Rs 83.63 Rs 78.86 Kolkata Rs 82.05 Rs 77.06

^ - Prices as on 1st August 2020

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 lowest VAT on Petrol, thats why Petrol selling at such low rates in Goa.

All this leads to different Prices of Petroleum Products in Various States and Union Territories in India

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