The crude oil is a mixture of long hydrocarbon molecules which are recombined into shorter molecules during refining. Typically one barrel of crude oil which equals 42 gallons (158 Ltr) will yield 44.6 gallons (164 Ltr) of refined products including tar, gasoline/petrol, diesel and jet fuel to heating oil and natural gas.
Currently crude oil is priced around $110, the following table gives the price of petroleum products to rise in Crude oil price
Ltr | Cost ($) | Cost Per ltr ($)* | Cost ($) | Cost Per ltr ($)* | Cost ($) | Cost Per ltr ($)* | |
1 Barrel crude oil | 158.8 | 100 | 0.629881582 | 150 | 0.944822 | 200 | 1.259763 |
Petrol | 74.6 | 47 | 0.629881582 | 70.5 | 0.944822 | 141 | 1.889645 |
Diesel and Heating oil | 36.5 | 23 | 0.629881582 | 34.5 | 0.944822 | 69 | 1.889645 |
Other products | 28.6 | 18 | 0.629881582 | 27 | 0.944822 | 54 | 1.889645 |
Jet fuel | 15.9 | 10 | 0.629881582 | 15 | 0.944822 | 30 | 1.889645 |
Liquified petroleum/ LPG | 6.4 | 4 | 0.629881582 | 6 | 0.944822 | 12 | 1.889645 |
Asphalt/Tar | 4.8 | 3 | 0.629881582 | 4.5 | 0.944822 | 9 | 1.889645 |
*plus production charges | |||||||
Indian Scenario, For every Barrel of crude oil imported, the charge of the oil increases by import duty etc. Finally when it is processed and goes to end user in the form of petrol, for every ltr of petrol, user will have to bear 100% additional charge to the basic crude oil price.
The forecasted fuel price in India, if the current tax system and other charges remain same is illustrated below.
Barrel cost in $ | 80 | 100 | 150 | 200 | |
Actual petrol price in Rs.* | 23 | 30 | 47.2 | 94.5 | |
Central share (70% of basic) | 18 | 21 | 33.04 | 66.15 | |
State Govt Share (33% of basic, varies from State to State) | 8 | 9.9 | 15.576 | 31.185 | |
Transportation (33% of Basic) | 8 | 9.9 | 15.576 | 31.185 | |
Dealer charge | 1 | 1 | 1 | 1 | |
Cost to end user Rs. | 58 | 72 | 112 | 224 | |
*Considering $ value at Rs. 50 | <><> | <><> | |||
The revenue generated from petrol selling in India, considering the average 5% increase from 2009, 3600,000 barrels per day, accounts for 13100000000 barrels per year for 2012. The Government revenue generated from petrol sale alone is around 16 lakhs crores for Central Government and 7 lakhs crores for State Government which off course vary for State to State depending on the taxation.
Watch out for our next blog will focus on alternative resources to reduce petrol consumption.
Sources:
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