Petrol, diesel prices in Lakshadweep cut by Rs 15.3

Oil prices in Lakshadweep: Petrol and diesel prices in the Lakshadweep islands have witnessed a major reduction following the Indian Oil Corporation's decision to eliminate a cost element aimed at recuperating expenses incurred on special infrastructure for fuel transportation to these remote areas. 

According to information from IOC, petrol prices have been slashed by up to Rs 15.3 per litre in Andrott and Kalpeni islands, while diesel prices have seen a reduction of Rs 5.2 per litre in Kavaratti and Minicoy islands. Effective from March 16, the new rates signify a considerable relief for consumers.

IOC, responsible for supplying petrol and diesel to four islands - Kavaratti, Minicoy, Andrott, and Kalpeni - maintained depots at Kavaratti and Minicoy, with product supply facilitated directly through pipelines for retail outlets in these locations. However, for Andrott and Kalpeni, supply was managed via barrels from the Kavaratti depot due to logistical constraints.

The cost element, amounting to Rs 6.90 per litre, had been previously factored into the pricing structure to recover capital expenditure incurred at depots in Kavaratti and Minicoy over the past three years. With the completion of capital expenditure recovery, this element has now been removed, resulting in a significant reduction in retail prices by approximately Rs 6.90 per litre (inclusive of 10 per cent VAT).

Furthermore, to standardise prices across all islands, the available margin of Rs 7.60 per litre has been distributed proportionately based on sales volume. This adjustment translates to a reduction of approximately Rs 5.2 per litre in petrol and diesel prices for Kavaratti and Minicoy, and a larger reduction of about Rs 15.3 per litre for Andrott and Kalpeni.

Oil Minister Hardeep Singh Puri expressed gratitude to IOC for extending these benefits to the residents of Lakshadweep, highlighting the positive impact on both the quality of life and economic prospects for the islands. This move reflects the government's commitment to ensuring equitable development across the nation.

(With PTI inputs)