Petrol, diesel prices slashed by Rs 15.3 in Lakshadweep Islands

Petrol and diesel prices have been significantly reduced in the islands of Lakshadweep, with cuts up to Rs. 15.3 per litre. The price revision comes after the Indian Oil Corporation (IOC) discontinued a cost element that was previously imposed due to additional infrastructure expenses incurred in fuel transportation to the remote islands.

In two of the islands, Andrott and Kalpeni, the prices have seen a drop of Rs. 15.3 per litre, whereas in Kavaratti and Minicoy, the reduction is Rs. 5.2 per litre as announced by the oil ministry. The revised petrol prices in Kavaratti and Minicoy now stand at Rs. 100.75 per litre, down from Rs. 105.94, and in Andrott and Kalpeni, the new prices have been revised to the same amount from the previous Rs. 116.13.

Similar revisions were made for diesel prices with new rates at Rs. 95.71 per litre in Kavaratti, Minicoy, Andrott, and Kalpeni, effective from March 16. These products are primarily supplied to the islands by the IOC from depots in Kavaratti and Minicoy via a pipeline from a depot in Kochi, Kerala.

A charge averaging to Rs. 6.90 per litre was part of the price structure of petrol and diesel to recover the cost of capital expenditure at the depots in Kavaratti and Minicoy. This element, in place for the last three years, has now been removed after the full recovery of the capital expenditure, leading to a drop in the retail selling price of fuel by around Rs. 6.90 per litre.

To standardise the prices across the islands, a margin of Rs. 7.60 per litre was redistributed across all the four islands, resulting in a significant price reduction at the retail level, especially in Andrott and Kalpeni where prices were notably higher due to barrelling costs.

In response to the price reductions, Oil Minister Hardeep Singh Puri expressed his appreciation towards IOC for facilitating improved living and business conditions for the residents of Lakshadweep by reducing fuel prices. He also emphasised that the move signifies an assurance of benefits across all parts of the country due to effective governance.