HOW PETROL PRICE IN INDIA DECIDE??
Diesel Pricing in India Let as assume that Diesel is being imported by IOC (Indian Oil Corporation) from a company in Saudi Arabia. The price at which this Diesel is purchased is called FOB Price i.e. Free On Board Price. In simple words this is the price IOC will pay the Saudi Arabian company to deliver Diesel at a nearby international port Now this Diesel will be transported on ships from aforementioned port to some Indian Port. For this a charge will be paid to transporter. This charge is called Ocean Freight. When Ocean Freight is added to FOB Price we get resultant as C & F Price i.e. Cost & Freight Price. Thus C&F Price = FOB Price + Ocean Freight Now the Diesel has reached an Indian Port. Here a term called Import Charges comes into picture. It consists of three charges - Insurance charges i.e. Premium paid to an insurance company for the insurance cover it provided to the crude Port Dues i.e. Fees paid in lieu of using the facilities of a port Ocean Losses i.e