Current Petrol/diesal Allowances Paid In IT Companies - CiteHR
Partner - Risk Management
Executive Human Resource At Emcure Pharmaceuticals
Calcutta University
Mayur Shinde HR
Assistant Manager - Hr
+1 Other

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Hi :
We want to revise our petrol allowance paid to team travelling locally on official duty. They have their own 2-wheeler/car. Please suggest the prevailing rates (2012-13) paid for 2 Wheeler/4 Wheeler (considering the cost of vehicle wear and tear as well).
Request urgent help.
- Gia

hi, When you say revise, that means you have some rates defined currently.. Can you share that, depending upon that others can comment/ suggest.
Hi :
Currently we pay Rs.2/per km for two wheeler and Rs.4/- per km for car. This was formulated in 2010. The petrol/diesal prices have shotup tremendously since then hence we want to revise the allowances.
- Gia

Friends : Request your inputs/suggestions. This will be useful for me to present the right info to my mgmt and take their signoff. - Gia
hi, as per petrol hike from 2010 till 2013 we might have to give 15/kms... but that not possible as per policy. So i guess you can revise it to 5 and 8/10 Rs/km for 2 and 4 wheelers respectively
Hi Mayur :
Actually I want to understand how do we calculate the per km Travel reimbursement. I mean how do we arrive at these figures as you told that Rs.8-10/km
( 4 wheeler) and Rs.5/km (2 wheeler).
Please throw some light on its derivation.
- Gia

As you said --- for 2010 your management used to pay rs 2/km for 2 wheeler and rs 4/km for 4 wheeler, when the petrol price was -55.87/litre[dec2010]
Now its 76.59/litre.. the percentage increase in 2 yrs has been 37.5%, so considerable increased price would be 2.75/- for 2wheeler and 5.50/- for 4wheeler.
but i hope this would be finalised with bilateral agreement between your management and employees representative/union. then they would also ask for difference in AICPI , which in 2010 was 815 and now 969.. So you should take this also into consideration..
this was my views....wait for seniors to pour more ideas into this...

Please consider standard average for 2 wheeler as 40 KM/ Liter and four wheeler as 12 KM/ Ltr
then if rate of patrol is 76.80 / ltr then for two wheeler :
for 40 KM= 76.80 Rs.
for 1 KM= x
=76.80/40= Rs. 2 per KM then no revision required.
for 4 wheelr patrol:
76.80/12= Rs. 6.4 Per KM
Revision of Rs. 2.4 is required for 4 wheeler.
calculate as per above logic.

The Logic is very good, calculate accordingly here I would add only the wear and tear of the vehicle for which you can add 25% on the allowance amount per km
I checked with my clients to see what they are doing.
Most of them are currently giving vehicle allowance of rs. 9 to 11 per km for use of their private vehicles for office work in mumbai.
Vehicle mileage in mumbai is rarely more than 10 km to a Liter,
Maintenance cost is generally 5000 to 8000 per quarter
A small vehicle costs rs. 5 lakhs and is expected to be used for 80,000 km before being discarded.
These things are generally considered for computing the vehicle allowance.
If the vehicles are being used for few casual trips, you may simply allow them to claim relevant cab fare to keep things simple. The other way of working out the increase is to link to taxi fares. So if there has been a 50% increase in cab fares, let your allowance increase by 50%

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