How Fuel Cost Per KM Is Calculated
Fuel cost per kilometre is calculated using a simple formula: Fuel Price ÷ Vehicle Mileage. For example, if petrol costs ₹102 per litre and your car delivers 18 km per litre, the cost per km is ₹5.67. Daily cost = cost per km × daily distance. Monthly cost = daily cost × 30.
Understanding your per-kilometre fuel cost is essential for budgeting, comparing vehicles, and evaluating whether switching fuel types makes financial sense. The calculation is straightforward but requires accurate inputs: current fuel price, real-world mileage (not ARAI figures), and actual distance travelled.
ARAI-certified mileage is measured in ideal laboratory conditions and is typically 15–25% higher than real-world figures. For accurate cost calculations, use your actual observed mileage from the fuel log method: fill the tank completely, note the odometer reading, drive until near empty, refill, and divide distance by litres consumed.
Cost Per KM Formula Examples
| Vehicle | Fuel Price | Mileage | Cost Per KM | Monthly (40km/day) |
|---|---|---|---|---|
| Petrol Hatchback | ₹102/L | 20 km/L | ₹5.10 | ₹6,120 |
| Diesel Sedan | ₹92/L | 22 km/L | ₹4.18 | ₹5,018 |
| CNG Compact Car | ₹88/kg | 25 km/kg | ₹3.52 | ₹4,224 |
| Petrol Bike | ₹102/L | 50 km/L | ₹2.04 | ₹2,448 |
| Petrol SUV | ₹102/L | 12 km/L | ₹8.50 | ₹10,200 |