Components of the FPF
MRP= V1+V2+V3+V4+V5+V6+V7
V1 = Landed Cost Per Liter in Rs
V2 = Processing Cost Per Liter in Rs
V3 = Stockholding Cost Per Liter in Rs
V4 = Taxation Per Liter in Rs
V5 = Other Cost 2% of total cost per liter exclusive taxes & dealer margin. This is to cover up administrative expenses, personnel cost, operational cost and other cost elements and depreciation.
V6 = Profit Margin – 4% of total cost per liter
V7 = Cost Saving from the RefineryProduction Per Liter in Rs
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