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VOLUMETRIC CHANGES

OF
PETROLEUM PRODUCTS

VOLUME OF PETROL

VOLUME OF DIESEL VARIES BY 0.08% PER C TEMPERATURE

VARIES BY 0.12% PER C TEMPERATURE

CONSIDER 10KL MS SUPPLIED AT 35C FROM TERMINAL AND SOLD AT OUR ROs AT 25C

10,000 X 0.12 (35-25) 100


=

120 ltrs

WHEN WE SELL 10,000 LTRS OF PETROL :

74 120 = Rs. 8,880 = Rs. 9,000


IS OUR LOSS

EFFECT ON OUR COMMISSIONS


Commission for 10,000ltrs. of petrol

is :

10,000 1.78 = Rs 17,800

EFFECTIVELY BRINGING DOWN

49 %

51 %

Rs 17,800 commission to Rs 8,800 2.2% commission to 1.1%

LOSS FOR PETROL


When the price increases, commission is not increased. Our losses increase as

cost of the 120ltrs of Ms increases.

i.e. if the price of petrol is raised to Rs100 and the commission is not changed,

LOSSES WILL BE:


100 120 ltrs = Rs 12,000
Effective commission =17,800 12,000

= Rs 5800

Rs 17,800 commission to Rs 5800 2.2 % commission to 0.57 %

COMPANY BUYS PETROLEUM PRODUCTS AT 15C


AND SELLS AT 35C

240 LTRS FOR EVERY 10,000 LTRS OF PETROL.


CHEATING

COMPANIES STEAL FROM THE DEALERS AND THE PUBLIC MORE THAN WHAT THEY PAY AS COMMISSION

[10,000 x 0.12 (35-15)] /1oo = 10,000 0.12 20/100

= 240 ltrs
At the present price of Rs 74, it amounts to: = 74 240 = Rs 17,760 Commission for 10,000ltrs. of petrol = 1.77 10,000 = Rs 17,000

DIESEL
DIESEL VARIES BY 0.08 %

FOR EVERY C TEMPERATURE


ie. 80 ltrs FOR 10,000 ltrs
FOR A 10C CHANGE IN TEMP.

For 10,000 ltrs of DIESEL

EFFECTIVE COMMISSION IS REDUCED


Rs 10,700 commission to Rs 6,300 2% commission to 1.2%