More on Petrol Bomb – By Opee

Opee posted this long comment on one of my post. It has some really interesting facts and figures so I thought I should post it here. So here goes.

There is a discussion going on “my” Lahore group that I am moderating and I want
to share it with you guys here at METBLOGS. I believe it would be of interest to
you guys.

OCAC, which was formed by the present government to fix the price of oil every
fortnight, has been doing great injustice to the Pakistani consumer and it is
time people raise their voice against its calculation mechanism. OCAC’s oil
price calculation is presented to baffle consumers in a maze of technical jargon
so as to divert attention form the real issue of fixing a fair price of petrol
for consumers who do not have recourse to company or government paid fuel.
Unfortunately OCAC only represents oil companies whose main aim is accumulation
of profits to fill their coffers at the consumers expense.

The following information has been gathered from Plats Oil Gram Scan Report,
which OCAC says it uses to fix prices every fortnight. On behalf of the consumer
we have calculated the price so you don’t have to be a technical expert to
understand it. We have accepted OCAC’s price on Sept 5 of $56 per barrel and
other inputs as laid down by OCAC.

Barrel = 42 gallons = 159 litres

Price of 1 barrel of crude oil in Rs = $ 56 x Rs 60 = Rs3360

Freight Premium = $2.16 x Rs60 = Rs129.6

Handling, Bank & LC charges & Marine Insurance @ 0.9% = Rs302.

Wharfage charges @ 3.85% = Rs129.36

Oil Companies Margin @ 3.5% = Rs117.6

Price of 1 barrel of oil = Rs3360 + 129.6 + 302 + 129.36 + 117.6 = Rs4038.56

Refining Cost @ 10% = Rs404

Price of 1 barrel of refined petrol = Rs4442.56

Hence price of 1 litre of petrol = 4442.56/159 = Rs27.94 per litre

Excise duty @ Rs0.88 per litre

Add 15% GST = Rs4.20 per litre

Dealers Commission @ 4.0% = 0.3 paisa per litre

Price per litre of petrol = Rs27.94 + Rs0.88 + Rs4.20 + 0.13 ps = Rs33.15

The government is still pocketing Rs20 per litre of petrol in addition to excise
duty of Rs0.88 per litre and General Sales Tax @ 15%.

Good Governance therefore demands that in all fairness to the consumer the
President and Prime Minister should appoint members from the public on the
committee to balance things out.


3 Comments so far

  1. Rehman Mohar (unregistered) on October 6th, 2005 @ 1:15 am

    But it is the problem in every country,
    if you look at the north America you will
    find samething. Gas prices are killing poverity.

  2. Haroon (unregistered) on October 6th, 2005 @ 6:12 pm

    Gas(petrol) prices here in the States are still less than what they are in Pakistan but consider this:

    In Pakistan your average car is very fuel-efficient. Consider Corolla, Civic, Alto, Mehran etc. All of them get great milage.

    On the other hand in the US 50% of the cars are SUVs (gas guzzlers). The remaining 50% are not small cars either and tend to consume lots of petrol and get worse milage compared to their Pakistan counterparts.

    The point is that in the US people might be feeling the pinch even more than in Pakistan.

    For me its no big problem because I own a very fuel-efficient Chevy Prizm which gives me around 35-40 mpg. In the US the people feeling the worst pinch are the ones owning Chevy Suburbans or Ford Explorers. All I can say for those people is : ‘kis nay kaha tha itni bari gaari kharido?’

  3. Darwaish (unregistered) on October 6th, 2005 @ 9:33 pm

    oh well people.. generally.. are getting CNG kits installed in their cars here which saves alot..ever since i got my car converted to CNG .. my gas expanses have been decreased almost three times.. ab ye aur baat hai that its NO FUN at all driving a cng car specially if its honda

    comparing US & pakistan its not gas prices that are real issue.. its the fact that price of everything increase with an increase in gas price n wo bi automatically without any control..which means mehangai ka toufaan.. a new mini budget basically .. n thats what people generally are afraid of.. n ofcourse the huge diff in our buying power so i think we are suffering far more than anyone in US!

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