How much crude oil is refined in India?
India processes about 10 million tonnes of crude oil every month. Of this, it produces around 9.5 million tonnes of petroleum products, viz petrol, diesel, kerosene, naphtha etc. The annual production of petroleum products in India amounts to around 117.6 million tonnes, out of which around 13 per cent is exported. Refineries export mainly petrol, diesel and naphtha. What is the gross refining margin? Suppose a refinery buys one barrel of crude oil at $50. It breaks this down to various quantities of petrol, diesel, aviation turbine fuel, naphtha, kerosene, furnace oil etc. Suppose these products, as a basket, are sold at $55. In this case, the gross refining margin is said to be $5 per barrel. The refining margin is thus the difference between the total value of petroleum products produced by the oil refinery and the price of the input i.e. crude oil. How do customs duties on petro products determine gross refining margins? For petro products manufactured by them, oil refineries in In
