Tuesday, April 22, 2008

64% rise in profits of OMCs and Pump Owners

EXPRESS NEWSPAPER investigative report recently published has some mind blowing facts..

According to the report, the recent increase of Rs.3 per liter has increased the profit margins of Oil Marketing Companies (OMCs) and Petrol Pump Owners by 64%. Including this Government will also be getting Rs.6 thousand million in the name of GST and Petroleum development levy(PDL) in mere 15 days.

After connecting the international oil price with local prices, In-land freight rose to Rs.3.16 which gave rise to in-land freight margin to Rs. 0.88.

PETROL FRONT

On petrol GST is Rs.6.58 and PDL is Rs. 4.89 per liter

Increase in OMCs commission from Rs.1.52 to Rs. 1.70 and Commission of Petrol pump owners rose from Rs.1.74 to Rs.1.95. In the end, Govt. is buying petrol at Rs.54.7 and selling at Rs.65.81. So, Rs.11.74 is being given away in the name of taxes and PDLs to OMCs and petrol pump owners.


HIGH OCTANE FRONT

High Octane GST is Rs.10.14 & PDL is Rs.11.14 per liter

Increase in OMCs commission from Rs.1.82 to Rs. 1.84 and Commission of Petrol pump owners rose from Rs.2.08 to Rs.2.10. In the end, Govt. is buying high octane at Rs.61.63 and selling at Rs.77.77 . So, Rs.16.14 is being given away in the name of taxes and PDLs to OMCs and petrol pump owners.


Source: Express News Report

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