Petrol, diesel prices reduced in Lakshadweep
Mar 16, 2024
New Delhi [India], March 16 : Prices of both petrol and diesel have been reduced by Rs 15.3 per litre for Andrott and Kalpeni islands, and by Rs 5.2 per litre for Kavaratti and Minicoy islands in Lakshadweep, the Ministry of Petroleum and Natural Gas (MoPNG) said on Saturday.
In a post on social media platform X, the ministry said, "As informed by @IndianOilcl, price of both petrol & diesel has been reduced by Rs 15.3/litre for Andrott and Kalpeni islands and Rs 5.2/litre for Kavaratti and Minicoy in the Lakshadweep islands, effective today."
https://twitter.com/PetroleumMin/status/1768918020636786947?t=6zvz4Qjppi-AJNZVijL7mA&s=08
According to the statement, Indian Oil Corporation Limited (IOCL) is the supplier of petrol and diesel to four islands in Lakshadweep: Kavaratti, Minicoy, Andrott, and Kalpeni.
While IOCL has depots at Kavaratti and Minicoy, the product at these depots is supplied from the IOCL depot in Kochi, Kerala.
Retail outlets at Kavaratti and Minicoy are supplied directly through pipelines from these depots. On the other hand, Andrott and Kalpeni islands are supplied from the Kavaratti depot through barrels.
The reduction in fuel prices comes as a result of the removal of an element amounting to Rs 6.90 per litre, which had been included in the price buildup of petrol and diesel for the recovery of capital expenditure made in depots at Kavaratti and Minicoy.
This element had been included in prices for the last three years, and since the full recovery of capital expenditure has now been achieved, it has been removed from the prices of petrol and diesel.
Due to barreling costs, the markets of Andrott and Kalpeni were experiencing higher retail selling prices (RSP) by around Rs 10 per litre compared to Kavaratti and Minicoy.
To equate the price of fuel across all islands, the available margin of Rs 7.60 per litre has been distributed across the four islands based on their sales volume.
This reduction in fuel prices will have a significant impact on consumers, with the price of petrol and diesel now set at Rs 100.75 per litre and Rs 95.71 per litre, respectively, across all islands of Lakshadweep.
The move has been lauded as a step towards providing relief to consumers and promoting tourism in the picturesque Lakshadweep Islands.
