Overall cost of producing 1 liter of petrol
I've been wondering how much would be the overall cost of producing 1 liter of petrol. I've no clue what kind of processing is done on raw oil extracted from Earth's core and what are the costs involved. If anyone's got some knowledge of this topic, please post it here. It'd help if you could post a break-up of the processes and costs involved.
Replies
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Ramani AswathRefinery costs may be about 10 - 15% of the cost of crude oil. All the other costs are add on.
In US this will be about 10 cents/litre -
Kaustubh KatdareWhat would be the break-up of the overall extraction process?
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Ramani AswathMost of the refineries here are from the US. I had spent some time (very long back) at the Caltex refinery at Vizag. Most of the senior technical people were from the US. We can take the processes to be the same. Labour may be slightly cheaper. However, this is not a major component in petroleum refining.
This report of US refining may throw some light:
#-Link-Snipped-# -
Kaustubh KatdareThanks. I think I'll explore it further. I was more interested in looking at the costs associated at each step.
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prashpanCrude Oil is at about USD 100 today . At todayâs exchange of Rs. 56 per USD
this works out to Rs. 5600 per barrel.
A barrel of Crude produces approx. 150 liters of Petrol or its equivalent.
The total of all other costs involved in converting crude to Petrol â which includes transport of crude and refined products, cost of refining, reasonable refining margin for the refinery, fuel used by the refinery, dealer commission, etc. â is approx. USD 12, which works out to Rs. 672 per barrel.
(5600+672)/150 = 41.8133 Rs / Liters
Sources : #-Link-Snipped-# -
Kaustubh KatdareNope, you are 'reverse' calculating the costs. I'm purely interested in knowing the price it requires to get 1 liter of petrol from crude oil without any taxes added.
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Ramani AswathCrude oil is a mixture of hydro carbons from virtually gas to thick tar. Itis separated by fractional distillation. There is no chemical processing. Depending on demand a process called catalytic cracking can be used to produce more petrol at the cost of other heavier fuels.
About 45 to 50% comes out as petrol about 40% as diesel, aviation fuel and others. The rest is heavy fuel oil and tarry matter. Actual percentages vary from source to source.
The major step is the distillation. Sulphur compounds called mercaptans give a foul smell. These are removed by a process called 'sweetening'. There are small additional costs for such cat cracking and sweetening.
Unlike in the case of other chemicals, there is not much processing involved in petroleum refining.
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