Quick question. If India brought oil at 40% discount from Russia

[DonnyStrumpet]

Why our petrol price still increased since 2021. Who was benefitting all these days?

And also why should whole India face T thatha wrath. 

[DonnyStrumpet]

Never mind. I found the answer. It was reliance industries 

https://www.businesstoday.in/amp/latest/corporate/story/reliance-industries-and-rosneft-ink-largest-ever-india-russia-oil-supply-agreement-report-457119-2024-12-12

 

@Konebhar6 @jpismahatma @akkum_bakkum

[MyLeakHawla]

Ante ippudu cheap ga vasthundhi ani 100 ni 30 chesthe. What happens if it increases? 

[Sreeven]

Oka gujju gadu inko gujju gadiki helping anthe..e gujju gallani namiithe nasanam..

[akkum_bakkum]

43 minutes ago, DonnyStrumpet said:

Never mind. I found the answer. It was reliance industries 

https://www.businesstoday.in/amp/latest/corporate/story/reliance-industries-and-rosneft-ink-largest-ever-india-russia-oil-supply-agreement-report-457119-2024-12-12

 

@Konebhar6 @jpismahatma @akkum_bakkum

Wen was the last time petrol prices went down in nda regime? Its an accumulation all the time. Ee modi gadi gujju feeling endo. Thatha inka adani case gurinchi matladatle…once he spits out mana vishwa guru surrender aithademo

[Konebhar6]

1 hour ago, DonnyStrumpet said:

Why our petrol price still increased since 2021. Who was benefitting all these days?

And also why should whole India face T thatha wrath. 

It makes sense for India to not buy from US or in $ due to the rupee depreciation. IT would cost India a lot more and would have been passed on to the consumers. 

This was the reason India started buying Oil from Russia and Iran buying in their local currencies. Its a win for India. 

I do not know the complete economics, but I remember reading that the excess profits that the country is making because of cheaper oil are being used to reduce debt. I do not know if it happened or not.

[AndhraneedSCS]

US vadu, Dont buy Russian Oil, Dont be part of BRICS, thokka tholu antadu 

[andhra_jp]

 

[jpismahatma]

6 hours ago, DonnyStrumpet said:

Never mind. I found the answer. It was reliance industries 

https://www.businesstoday.in/amp/latest/corporate/story/reliance-industries-and-rosneft-ink-largest-ever-india-russia-oil-supply-agreement-report-457119-2024-12-12

 

@Konebhar6 @jpismahatma @akkum_bakkum

Freebies teesa 10gali. I hope trump fixes India for good. 

[Android_Halwa]

This is what happens when intelligent people use over intelligence to solve world problems.

Let's break down the cost.

 

 

[Android_Halwa]

• Brent Crude oil price = $67 per barrel

• 1 barrel = 159 liters

• USD to INR exchange rate = ₹87

---

Step 1: Price per liter in USD

67159≈0.4214 USD per liter\frac{67}{159} \approx 0.4214 \, \text{USD per liter}15967≈0.4214USD per liter

---

Step 2: Convert to INR

0.4214×87≈₹36.660.4214 \times 87 \approx ₹36.660.4214×87≈₹36.66

---

✅ Final Answer:

Price per liter of crude oil ≈ ₹36.66

[Android_Halwa]

So, technically one liter of crude oil costs about 37 rupees as today's live rates.

Theoretically, this is 100% perfect and correct. Now the question arises as why does govt sells it at 100 RS and profits of 60 rupees.

Trust me, if oil marketing companies make 50-60 rupees per liter profit, then those companies would be one the most profitable ones on earth.

[jpismahatma]

4 minutes ago, Android_Halwa said:

So, technically one liter of crude oil costs about 37 rupees as today's live rates.

Theoretically, this is 100% perfect and correct. Now the question arises as why does govt sells it at 100 RS and profits of 60 rupees.

Trust me, if oil marketing companies make 50-60 rupees per liter profit, then those companies would be one the most profitable ones on earth.

Anduke freebies teesa 10gali. Too much corruption 

[Android_Halwa]

Now, let’s factor in all the variable costs involved:

These include refining costs, additives and chemicals, energy consumption, waste handling and treatment, further processing (such as for naphtha), transportation, and, importantly, expenses related to compliance, safety, and environmental regulations.

Typically, these variable costs account for around 10% of the crude oil price, which, at today’s live rates, translates to approximately ₹4–₹5 per liter.

So, without any profit margin, the base price of petrol would be around ₹43–₹45 per liter, assuming a crude oil price of $67 per barrel and an exchange rate of ₹87 per USD.

---

Next comes oil marketing and retailing.

Once crude is refined, it must be delivered to fuel stations. This involves an extensive setup — including storage facilities, distribution networks, pipelines, fleets of tankers, and an organized monitoring and management system, along with the manpower to operate it.

This infrastructure adds another ₹4–₹5 per liter.

That brings the fuel price at the pump to roughly ₹48–₹50 per liter. Add another ₹2 per liter as the commission paid to petrol station operators.

---

🔁 Recap:

With crude oil priced at $67/barrel and the exchange rate at ₹87/USD, the retail price of fuel comes to approximately ₹52 per liter, including the costs of refining, logistics, infrastructure, and distribution — before any taxes or profits are added.

[Android_Halwa]

Now, let’s look at the real hidden factor behind the high price of fuel in India — infrastructure and financing.

Whether you're refining 1 liter or 100 million liters, you need large-scale, high-capacity refineries. India currently has about a dozen such facilities, and most of them are built and operated through market borrowings.

For instance, setting up a greenfield refinery can cost around ₹25,000 crore. It typically takes 4 to 6 years to reach full commissioning, but even then, in real-world conditions, these plants often operate at only 60–70% capacity.

Now the question is — who bears this ₹25,000 crore investment?

While we account for the cost of refining in per-liter calculations, the capital investment and financing burden of building and maintaining such massive infrastructure is often overlooked. So who pays for this? How is it recovered?

These costs are eventually built into the pricing structure — indirectly passed on to consumers — through mechanisms like depreciation, interest payments, and return on investment, contributing further to the retail fuel price.