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

[Android_Halwa]

🔍 Taxes – The Biggest Chunk

Once the fuel reaches the petrol bunk with all costs factored in (refining, logistics, infrastructure, etc.), it still costs around ₹52 per liter, as explained earlier.

Now comes the taxation layer, which is often the largest component of the final price:

1. Central Excise Duty – Collected by the central government (fixed per liter).

2. State VAT (Value Added Tax) – Varies from state to state; some states charge more than others.

3. Cess and other levies – Additional charges earmarked for specific funds or infrastructure.

Combined, taxes can account for 45%–60% of the final retail price.

For example:
If base fuel cost is ₹52 per liter, taxes can add ₹30–₹35 on top of that, taking the price to ₹85–₹90 per liter or more in some states.

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📈 Profits – Reasonable, but Built In

Oil companies (refiners, marketers, distributors) also include a small profit margin, typically:

• ₹1–₹3 per liter for refiners (public or private).

• ₹2–₹3 per liter for OMCs (Oil Marketing Companies).

• ₹2 per liter for retail dealers (bunk operators).

While this isn’t a major contributor compared to taxes, it ensures viability for private/public sector participation.

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🛡️ Subsidies – Now Mostly Phased Out

Historically, the Indian government subsidized fuel prices (especially for diesel, LPG, and kerosene) to keep them affordable. This meant the government or oil companies bore some of the cost to shield consumers.

However, in recent years:

• Petrol and diesel prices were deregulated (2010s onward).

• Subsidies have largely been removed for petrol and diesel.

• Only LPG and kerosene receive limited subsidies, often through direct benefit transfer (DBT).

So currently, there is minimal subsidy on petrol and diesel — they are sold at market-linked prices (though sometimes temporarily adjusted for political or economic reasons).

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✅ Summary: How ₹52 Becomes ₹90+

Component	Approx. Cost (₹/liter)
Crude + Refining + Transport	43–45
Retailing, infra, dealer margin	7
Total before tax	~52
Taxes (central + state)	30–35
Final Retail Price	₹82–₹90+

[allbakara]

59 minutes ago, jpismahatma said:

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

Mundhu thatha gadu aadi grudh@ aadu kadukkunte saalu

[Android_Halwa]

Lets see if anyone can come up with a counter argument.

[Android_Halwa]

What amuses me is that, despite living in a world where information is literally at our fingertips, we still fall for tricks and rarely take the time to verify the facts.

[Android_Halwa]

7 hours 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. 

The claim of a 40% discount on Russian crude is largely a myth. Ever since India began purchasing oil from Russia, global crude prices have hovered between $70–$80 per barrel, and we've been buying Russian crude at around $60 — which isn’t a massive discount, contrary to popular belief.

Moreover, Indian refineries aren't buying this crude solely for domestic consumption. A significant portion is being refined and exported as finished petroleum products. This marks the emergence of a new and growing market for India in global fuel exports.

[Konebhar6]

46 minutes ago, Android_Halwa said:

Lets see if anyone can come up with a counter argument.

A simple chat GPT query if India is buying oil from Russia shows that we buy at a 10-12 % discount and not 40% as claimed. Shows the prices of Brent crude and the price we buy from Russia. 

[Android_Halwa]

19 minutes ago, Konebhar6 said:

A simple chat GPT query if India is buying oil from Russia shows that we buy at a 10-12 % discount and not 40% as claimed. Shows the prices of Brent crude and the price we buy from Russia. 

Yeah, That’s what I claimed…its not hugely discounted but meagre 10-12% discount…

More over, This is a disguise trade. We are helping Russia fuel its war chest…India is not picking up cheap crude, infact if we can shop around, we can find similar deal in the gulf itself considering insurance and freight cost.

[Android_Halwa]

More than half of all the Russian crude is refined by Nayara Energy and Reliance….and this refined crude js being sold in other markets.

My understanding is that are selling to overlook and spread the sanction risk.

Nayara was known as Essar, after they went bankrupt Rosneft picked up the stake and rebranded as Nayara Energy, Rosneft along with offshore subsidiaries pretty much own whole of Nayara Energy just to escape the risk of sanctions.

[Konebhar6]

14 minutes ago, Android_Halwa said:

Yeah, That’s what I claimed…its not hugely discounted but meagre 10-12% discount…

More over, This is a disguise trade. We are helping Russia fuel its war chest…India is not picking up cheap crude, infact if we can shop around, we can find similar deal in the gulf itself considering insurance and freight cost.

I get your end result, I did not understand why you calculated distribution costs, conversion rate, etc. Actual data is available. What price (in $) we bought from Russia and what price Brent were sold in general by OPEC in $. 
 

[Konebhar6]

Oil drilling and refineries have been wealth generators in India. I still got OIL India stock along with ONGC and reliance. HPCL and BPCL - Buy and leave forever. 
NMDC comes to mind when it comes to minerals. 
I dont trade much in India these days., but still hold some stocks.

[Android_Halwa]

Subsidies used to be part of fuel price but not anymore. Instead of retail subsidy, govt reimburses oil marketing companies and it is part of budget. Ranges anywhere from 3000 crores to 20,000 crores. 

For someone who claims why the govt is levying heavy taxation on fuel, this is to fund the reimburses and subsidies to oil marketing companies. 

[jpismahatma]

4 hours ago, allbakara said:

Mundhu thatha gadu aadi grudh@ aadu kadukkunte saalu

Someone should fix freebies, lazy attitude, corruption etc. Urke paisal panchesthe etla. Hope trump forces India to rethink. 

I don’t support trumpf but India people are lot more entitled.

[DonnyStrumpet]

7 hours ago, Android_Halwa said:

• Brent Crude oil price = $67 per barrel

• 1 barrel = 159 liters

• USD to INR exchange rate = ₹87

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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

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Step 2: Convert to INR

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

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✅ Final Answer:

Price per liter of crude oil ≈ ₹36.66

This is misleading. This is called data spinning.
 

It’s funny that you took conversation rate from 2025. We have been importing since early 2021. The dollar to rupee conversion was only 71 back then. Now do the math.

Also for others who are confused about the price. Here is an evidence. We got almost $35 discount on each barrel. May be in 2025 it’s not as profitable. But if you look at big picture since 2021. You will have a better idea about what exactly transpired. 

https://www.indiatoday.in/amp/business/story/russia-is-selling-oil-at-discounted-prices-to-india-all-you-need-to-know-1932270-2022-04-01

[DonnyStrumpet]

6 hours ago, Android_Halwa said:

Lets see if anyone can come up with a counter argument.

In contrary to your theory, check how much import excise duty was reduced on petroleum products since 2021 in India? You will be amazed 

[DonnyStrumpet]

5 hours ago, Konebhar6 said:

A simple chat GPT query if India is buying oil from Russia shows that we buy at a 10-12 % discount and not 40% as claimed. Shows the prices of Brent crude and the price we buy from Russia. 

Check since 2021. Not just current discounts.