Implement The Petrol Price To Be Given For Per Km? - CiteHR
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Yamini.chopra
Manager Hr
+4 Others

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Hi Our Company is introducing a new policy. The Company is into Furnitures and fixtures. We do have Marketing and Sales Department. So we wanted to implement the Petrol Price to be given for per Km.Keeping as the Petrol Price Rs 73. Therefore how much petrol conveyance can be given for per KM

Petrol expenses reimbursement should be not be standard for all employees. Employees entitled for using 4 wheelers should get around Rs. 8/- per km and employees using 2 wheelers should get around Rs. 4/- per km.
If employees are using their personal vehicle then they should also get fixed vehicle maintenance charges.
regards,
Kamal

Dear Kamal,
Could you please explain how do we calculate per km Travel reimbursement , likewise you told that Rs.8/km
( 4 wheeler) and Rs.4/km (2 wheeler)....How do we arrive to these figures...
Can you plz throw a light on its derivation / calculation....

Its a rough calculation.
In city a 4 wheeler (6-7 yrs old) gives a minimum average of 10km per ltr. So the actual expense is rs. 7.5/-
For a 2 wheeler minimum avaerage is 20km per ltr. actual expense is rs. 3.75/-

Why to take into account the minimum average, it should be the normal one i.e. for car ranging 12-15 km./ltr. and for 2 wheelers 40-45 km./ltr.
The reimbursement of mileage for the use of personal car on companies work is not calculated only on the basis of the price of petrol and the fuel consumption rate of the vehicle! It includes the amortised expenses on a/c of:
Price of petrol and 10-12 kms/litre for non AC usage and 8-10 kms/litre for AC ones.
Cost of normal wear and tear/Insurance/Road tax/driver salary(if entitled). For a senior management even the EMI on the car may be included.
The average at todays prices and rates the reimbursement per KM would be minimum Rs 10/-per km for non AC and Rs. 12/- per km for AC.
If you would hire a car you would be paying minimum Rs. 12/- per km for non AC(other than the usual battered Ambys/Indicas) and Rs. 15/- per km for an AC Indigo.
Trust this information would prove to be useful and I have given the rates applicable to a metro city like Mumba, Delhi, etc.
Regards,
UG

This is very helpful information. This has helped me in preparing the reimbursement policy.
Dear all,
Can anyone update me on the formula for calculating the Fuel Price. I want to fixed the petrol/diesel reimbursement price in my company.
Please suggest as how to decide the rate for reimbursement per km.
regards
Yamini

Dear all,
Can anyone update me on the formula for calculating the Fuel Price so that a per km charge can be prepared for senior management people in my our organisation. I want to fixed the petrol/diesel reimbursement price in my company.
Please suggest as how to decide the rate for reimbursement per km.
regards
Javed

Dear All,
I think for 2 wheeler, formula should be consider as following :
Current Fuel price is Rs. 83 ( Can change city to city)
Average Mileage of 2 Wheeler we consider as 45 KM/l
83/45 = 1.84/KM
Hence Rs. 1.84/KM will be the the fair price.
Correct me if I am wrong.

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