Petrol and diesel prices in the Lakshadweep islands have witnessed a significant reduction after the Indian Oil Corporation (IOC) removed a cost element aimed at recovering expenses related to special infrastructure for fuel transportation to the remote islands. The move has led to a reduction of up to Rs 15.3 per litre in petrol and diesel prices.
According to the oil ministry, petrol prices on Andrott and Kalpeni islands have been reduced by Rs 15.3 per litre, while diesel prices have been slashed by the same amount. Similarly, petrol and diesel rates on Kavaratti and Minicoy islands have been decreased by Rs 5.2 per litre.
The revised prices, effective from March 16, reflect a substantial decrease compared to previous rates. For instance, petrol prices in Kavaratti and Minicoy have dropped to Rs 100.75 per litre from Rs 105.94, while diesel rates have decreased to Rs 95.71 from Rs 110.91.
The cost element of Rs 6.90 per litre, included in the price buildup of petrol and diesel for the past three years, was aimed at recovering capital expenditure incurred in depots at Kavaratti and Minicoy due to low and unviable volumes. With the completion of capital expenditure recovery, this cost element has been removed from fuel prices, resulting in significant price reductions for consumers.
To ensure equitable pricing across all islands, the available margin of Rs 7.60 per litre, including VAT, has been distributed based on sales volume. Consequently, petrol and diesel prices have been reduced by around Rs 5.2 per litre in Kavaratti and Minicoy, and by approximately Rs 15.3 per litre in Andrott and Kalpeni.
Oil Minister Hardeep Singh Puri expressed gratitude to IOC for extending the benefits of reduced fuel prices to the people of Lakshadweep. He highlighted that the move would enhance ease of living and ease of business, fostering a brighter future for the islands and positioning them as major global tourism hubs. Puri emphasized that the initiative reflects the government's commitment to ensuring the welfare of all regions through effective governance.
