Petroleum Hike in India: An Enquiry

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...

The yield of Petroleum products from crude oil 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.