How much does it cost to set up an oil mill plant?
Cost of Setting up an Oil Mill in India A small-scale groundnut oil production plant may cost anywhere between 7,00,000₹ and 25,00,0000₹, while a large-scale operation can cost crores or more. On average, it is estimated that 1 kg of groundnut seeds can yield between 35% to 50% oil, depending on the extraction method. This means that you can expect to get approximately 350-500 ml of oil from 1 kg of groundnut seeds.
How expensive is oil extraction?
Oil companies determine their drilling plans based on the economics of production, with a particular focus on the price of oil. According to a survey by the U. S. Federal Reserve Bank of Kansas City, the average cost of oil production is around $62 per barrel. For example, in 2024, oil prices averaged $7180 a barrel, meaning oil producers could expect a profit of around $25 a barrel, whether that oil was refined into gasoline, jet fuel or home heating oil, among other options.