Dear
In our organization, we increase petrol price only when there is an increase of petrol price on two occasions. Accordingly, please find attached a circular which I sent to all employees and branches. This is what we follow. I arrived at this change by computing the increase from the previous price, which worked out to 17.25%. Therefore the increase is effected accordingly.
Coming back to your requirement, I do not know when the last increase in petrol price took place in your organization. You can apply the same logic and compute it accordingly i.e. increase from the old price and current price.
As far as car is concerned, we provide "certain" litres of petrol every month according to their grade / field work. therefore the price increase will not have any bearing on these employees.
Balaji
From India, Madras
In our organization, we increase petrol price only when there is an increase of petrol price on two occasions. Accordingly, please find attached a circular which I sent to all employees and branches. This is what we follow. I arrived at this change by computing the increase from the previous price, which worked out to 17.25%. Therefore the increase is effected accordingly.
Coming back to your requirement, I do not know when the last increase in petrol price took place in your organization. You can apply the same logic and compute it accordingly i.e. increase from the old price and current price.
As far as car is concerned, we provide "certain" litres of petrol every month according to their grade / field work. therefore the price increase will not have any bearing on these employees.
Balaji
From India, Madras
Dear SM,
If you will consider the the current running cost for 4 wheeler including the maintenance (Servicing & other wear & tear) then u will find Rs. 4/- P.Km. viable. However, u can self judge the costing by discussing with your colleagues using 4 wheelers. Purpose of providing the attachment was providing you an idea for drafting policy whereas rates can be changed company to company. If we hire a commercial 4 wheeler then minimum charges are Rs. 7 To Rs. 8/- Per Km so from that point of view Rs. 4/- per km is comes on justifiable side.
Regards,
Harish
From India, Ludhiana
If you will consider the the current running cost for 4 wheeler including the maintenance (Servicing & other wear & tear) then u will find Rs. 4/- P.Km. viable. However, u can self judge the costing by discussing with your colleagues using 4 wheelers. Purpose of providing the attachment was providing you an idea for drafting policy whereas rates can be changed company to company. If we hire a commercial 4 wheeler then minimum charges are Rs. 7 To Rs. 8/- Per Km so from that point of view Rs. 4/- per km is comes on justifiable side.
Regards,
Harish
From India, Ludhiana
Hi, I agree with Harish . Let me know is it viable to fix a monthly lumsum as fuel expenses.Normally how do you all monitor this policy. Looking fwd to hearing from you Angha
From India, Calcutta
From India, Calcutta
Dear SM, this is in response to the mail addressed to Mr.Harish. Please do a sample study in your city. Please put yourself in the shoes of an employee attending to an official job travelling 10 KM by auto. The auto charges will be more than what you are entitled if the compensation you give is less than Rs.3.50 or 4. If you travel by a twowheeler of your own, ..... to save money you sacrifice your energy and comfort.....? I hope, most of the companies frame employee friendly policies.... this is just a suggestion...out of my experience.
From India, Vadodara
From India, Vadodara
Hi,
I want to start petrol expenses and per day allowances to be paid to the employees for petrol. How should I put that in practice and want to know if I should pay the employees according to the average that the vehicle gives or a standard rate. The company has a few employees who go for marketing purposes for the whole day as well as a few employees who go just for a few hours, maybe one or two hours a day.
Please help me as I am new to the company and a fresher.
Thanks.
From India, Pune
I want to start petrol expenses and per day allowances to be paid to the employees for petrol. How should I put that in practice and want to know if I should pay the employees according to the average that the vehicle gives or a standard rate. The company has a few employees who go for marketing purposes for the whole day as well as a few employees who go just for a few hours, maybe one or two hours a day.
Please help me as I am new to the company and a fresher.
Thanks.
From India, Pune
Dear All,
Thank you for sharing your experience regarding fixing petrol claims for two-wheelers and four-wheelers. However, I need proper supporting justification. If we are to fix a conveyance allowance for any vehicle, we should calculate the following particulars:
- Average vehicle mileage
- Fuel cost per liter
- Maintenance cost per km
For example: Two-wheeler - Average mileage 50 km per liter. Fuel cost as of date: Rs. 84 (84 / 50 = Rs. 1.68). Maintenance cost for a new vehicle - first 3 months service charges - Labor: Rs. 250, Replacement of Oil: Rs. 600, Service expense: Rs. 250, Other expenses: Rs. 250. Overall maintenance cost for 3 months = Rs. 1500 (1500 / 4500 = 0.35). Replacement of Tire cost = Rs. 1100 x 2 = Rs. 2200 for 35000 km (2200 / 30000 = Rs. 0.08). Total cost per km = Rs. 1.68 + 0.35 + 0.10 = Rs. 2.13.
I hope this can justify ourselves. In case anything is missing, please advise me.
Thanks & Regards,
P.K. Jagadeesan
From India, Bangalore
Thank you for sharing your experience regarding fixing petrol claims for two-wheelers and four-wheelers. However, I need proper supporting justification. If we are to fix a conveyance allowance for any vehicle, we should calculate the following particulars:
- Average vehicle mileage
- Fuel cost per liter
- Maintenance cost per km
For example: Two-wheeler - Average mileage 50 km per liter. Fuel cost as of date: Rs. 84 (84 / 50 = Rs. 1.68). Maintenance cost for a new vehicle - first 3 months service charges - Labor: Rs. 250, Replacement of Oil: Rs. 600, Service expense: Rs. 250, Other expenses: Rs. 250. Overall maintenance cost for 3 months = Rs. 1500 (1500 / 4500 = 0.35). Replacement of Tire cost = Rs. 1100 x 2 = Rs. 2200 for 35000 km (2200 / 30000 = Rs. 0.08). Total cost per km = Rs. 1.68 + 0.35 + 0.10 = Rs. 2.13.
I hope this can justify ourselves. In case anything is missing, please advise me.
Thanks & Regards,
P.K. Jagadeesan
From India, Bangalore
Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.