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.
From India, Mumbai
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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.
From India, Mumbai
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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
From India, Delhi
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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
From India, Delhi
Acknowledge(0)Amend(0)
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?
From India, Mumbai
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2508The 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?
From India, Mumbai
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