Petrol companies should cut down on advertising in various newpapers and magazines about their products, such expense can be better utalised and reduce the cost of petrol at delivery point to its customer.
RE:Petrol companies wate on advertising
by Mahesh on Jul 10, 2006 07:15 PM
A thankful statistics by Shantanu Chakraborty. I think people got enough information about how they are being robbed in India. I expect more people to know the significance of this fact. I will try my best to circulate these facts to more with the help of REDIFF.
RE:Petrol companies wate on advertising
by Desi on Jul 11, 2006 07:44 AM
I would like to add something to Dr. Natrajan's analysis. He put $2.2/gallon for petrol in USA, but right now I am paying $3.26/gallon here in California. Best quality petrol has 20 cents more. Matching this, petrol price can be estimated between Rs. 30 to 35 per litre. Add Rs. 10 for oil that Indian engines need, it comes to Rs. 45/ litre. Now India being developing country, govt needs more money to invest. So, price is going to be higher than 45. I don't know current petrol prices in India, but it should be Rs. 50-55. So, conclusion is that our fight should not be over price of petrol. But how govt spends our tax money that we pay on petrol. Because, it is our hard earned money and it must go in gutter of corruption. Thanks.
RE:Petrol companies wate on advertising
by Dr.K.Natarajan on Jul 10, 2006 07:16 PM
Let me make some modification to Santhanu's break-up:
The crude to petrol transformation results in several by-products, all of which are commercially useful. Asume that revenue from by-products = Rs. 2160 per ton. So,cost of petrol = Rs. 20,000 per ton (approximately). Thus, actual cost of petrol = Rs. 20 per litre. This also matches the cost of petrol in US @ 2.2 per gallon.
Now, the Govt. charges Rs. 40 per litre. Where does the extra Rs. 20 per litre go?
Crude oil costs about $70/bbl. A little over 6 barrels make a ton. So thats about $420-$450/ton.
Transport costs of crude at $50000/day for 200,000 ton tanker works out at $0.25/ton/day. For a Gulf route with a 15 day turn around thats about $4/ton.
Refining costs are about $6/ton
So at $460/ton you produce all your petrol, diesel etc. And they costs the same for the refinery to produce...except maybe for LPG/ATF.
Exchange rates are at about $1= Rs 46
Thus refined products cost about Rs 21,160 per ton ($460*Rs46)....about Rs 21 per litre.
A very good article indeed. I suggest why dont you put your views in a particular website created for disseminating information on Right to information so that every one can also start contributing and force upon the government to reveal their pricing for petroleum products.
The article is good. But it would have been more helpful even if a rough calculation was given reg how much petrol really costs to the companies before all the taxes. I am sure it will be less than Rs.20 per litre. In fact, every time the price is hiked, the finance ministry is doubly happy as its income soars. Why is it only 2.5 dollars per gallon in USa where the refining costs etc will be much higher due to high salaries? They also import most of their Petro products. BMREDDY
hi its really nice of you to pick up this topic. If someone digs in and gets information about the breakup of the petroleum price...it would be meaningful to the indian citizens...who will tie the bell? rgds
RE:apt thing
by JustAThought on Jul 11, 2006 10:07 AM
You are right mukundan 1) What about the fattiest salaries and perks of petrolium ministry and oil companies? It is said that it is the only govt.dept. and PSU where you are paid much more than pvt.counterpart? is this true? 2) Nausiatic bambardment of 'MAC does it' and "liquid engg' ads. Thousands of crores... 3) Tax on tax. In maharashtra, where VAT is supposed to be alternative for all current taxex, octroi is charged on VAT,sales tax, etc...
