How Do You Calculate Petrol Costs Per Km with Today's Prices in Mumbai and Chennai?

Introduction of New Policy for Petrol Price Calculation

Our company is introducing a new policy. The company is in IT services and support. We have a sales department (BDM, Sales Director). We want to implement the petrol price to be given per km for 4-wheeler cars and 2-wheeler bikes. Considering the petrol price in Mumbai at Rs 98.88/litre and Chennai at Rs 94.31/litre, I want to know how this calculation is done per km based on the current petrol and diesel prices. Please don't tell me to refer to the previous posts as they are old (2011) and don't make sense.

Dear All,

Calculation of Running Costs for Vehicles

For a 4-Wheeler Car, considering petrol costs Rs-98.88/ltr and average vehicle mileage at 15 km per liter (petrol) on the lower side:

(a) Cost of fuel = 98.88/15 = Rs-6.592 per km

Periodic service cost - considering an average cost of Rs-5000 every 10,000 km of driving:

(b) Average service cost = 5000/10000 = Rs-0.50 per km

Annual insurance cost - considering an average of Rs-20,000 for annual driving of 30,000 km:

(c) Insurance cost = 20000/30000 = Rs-0.68 per km

Cost of tire - average tire life of 30,000-40,000 driving km:

(d) Tire Cost = 15000/30000 = Rs-0.50 per km

So, the 4-wheeler car running cost = 6.592 + 0.50 + 0.68 + 0.50 = Rs-8.27 per km (a+b+c+d)

Calculation for a 2-Wheeler

Average vehicle mileage at 45 km per liter (petrol) on the lower side:

(a) Cost of fuel = 98.88/45 = Rs-2.20 per km

Periodic service cost - considering an average cost of Rs-1000 every 2000 km of driving:

(b) Average service cost = 1000/2000 = Rs-0.50 per km

Insurance cost = 4000/30000 = Rs-0.15 per km

Cost of tire - average tire life of 15,000-20,000 driving km:

(d) Tire Cost = 4000/15000 = Rs-0.25 per km

2-Wheeler running cost will be 2.20 + 0.50 + 0.15 + 0.25 = Rs-3.10 per km (a+b+c+d)

You may work on the same, and I hope it will resolve your query.

Thanks & Regards,

Sanjeev Arora

Understanding the Validity of Old Formulae

The earlier formats or formulae may be old, but why do you find them invalid? What you need to do is understand the working and then substitute the current values for the outdated ones. So perhaps you need to change the price of petrol there and nothing more.

Is there something in the formulae that is no longer valid?