Petrol Price Cut: We calculate price from refiners to your tank

Oil marketing companies in India cut petrol and diesel prices last week.

A litre of petrol now costs Rs 65.70 in Mumbai, followed by 64.97, 61.09 and 60.65 in Kolkata, Delhi and Chennai, respectively. But where does this leave prices in India when compared to rest of the world?

In dollar terms, as on July 18 (i.e. before the price cut of last week), petrol price in India was $1.11 per litre, or Rs 68.71 per litre. This is lower than the United Kingdom ($1.93, Rs 118.84), Sri Lanka ($1.26, Rs 77.73), Sweden ($1.85, Rs 113.93), Nepal ($1.27, Rs 78.15).

However, it is still higher than Pakistan ($0.93, Rs 57.18), USA ($0.83, Rs 51.22).

You can see the full list here.

How does petrol price in India reach Rs 61.09 per litre as sold in Delhi?

According to Indian Oil Corporation, India’s largest oil marketing company, cost and freight price of petrol (BS III equivalent) is $49.88 as on August 1.

Average exchange rate during the period was 67.16.

The price paid by oil marketing companies to refiners came at Rs 21.63 per litre and the price OMCs charged petrol pump dealers, excluding VAT and excise duty, was Rs 24.36.

Excise duty is at a hefty Rs 21.48 per litre.

Petrol pump dealers charge their commission of Rs 2.26 on each litre of petrol sold.

VAT, at 27%, in Delhi comes to Rs 12.99 taking the final price of petrol in Delhi at Rs 61.09.