Petrol, Diesel Prices In Lakshadweep Islands Slashed By Up To Rs 15.3

Effective from March 16, the revised petrol prices in Kavaratti and Minicoy have been reduced to Rs 100.75 per litre from Rs 105.94, and in Andrott and Kalpeni to Rs 100.75 per litre from Rs 116.13

Diesel rates have been adjusted to Rs 95.71 per litre in Kavaratti and Minicoy from Rs 110.91 and to Rs 95.71 in Andrott and Kalpeni from Rs 111.04

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Petrol and diesel prices in the Lakshadweep islands have been decreased by up to Rs 15.3 per litre following the Indian Oil Corporation's decision to eliminate a surcharge aimed at recovering costs associated with special infrastructure for fuel transportation to the remote islands. As per information provided by IOC and cited in an oil ministry post on X, the price reduction amounts to Rs 15.3 per litre for petrol and diesel in Andrott and Kalpeni islands, while Kavaratti and Minicoy islands see a decrease of Rs 5.2 per litre.

Effective from March 16, the revised petrol prices in Kavaratti and Minicoy have been reduced to Rs 100.75 per litre from Rs 105.94, and in Andrott and Kalpeni to Rs 100.75 per litre from Rs 116.13. Similarly, diesel rates have been adjusted to Rs 95.71 per litre in Kavaratti and Minicoy from Rs 110.91 and to Rs 95.71 in Andrott and Kalpeni from Rs 111.04.

"In Lakshadweep, IOC is supplying petrol and diesel to four islands: Kavaratti, Minicoy, Andrott, and Kalpeni. IOC has depots at Kavaratti and Minicoy, and the product at these depots is supplied from the IOC depot in Kochi, Kerala. Retail outlets at Kavaratti and Minicoy are supplied directly through pipelines from our depots. Other two islands, Andrott and Kalpeni, are supplied from the Kavaratti depot through barrels," the ministry said in the post.

Updated Petrol & Diesel Prices in Lakshadweep Islands, effective from today (16th March 2024). #FuelPriceUpdate #Lakshadweep #PetrolPrice #DieselPrice https://t.co/BlSScydkTV pic.twitter.com/QQsmxo1daN

— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) March 16, 2024

For the past three years, a surcharge of Rs 6.90 per litre has been incorporated into the price structure of petrol and diesel to recoup the capital expenses incurred in depots at Kavaratti and Minicoy in the Lakshadweep islands, where volumes are extremely low and economically unviable.

"Since the full recovery of capital expenditure has now been achieved, this element is being removed from the prices of petrol and diesel," the ministry said.

"This will reduce the retail selling price of petrol and diesel by around Rs 6.90 a litre (Rs 7.60 per litre including 10 per cent VAT), providing benefits to the customer,” it added. The retail selling prices (RSP) in Andrott and Kalpeni were approximately Rs 10 per litre higher than those in Kavaratti and Minicoy because of transportation costs.

"To equate the price of all islands, the available margin of Rs 7.60 a litre has been distributed across the four islands based on their sales volume," it said. 

"This will result in a reduction of retail selling price of petrol and diesel at the main islands, namely Kavaratti and Minicoy, by around Rs 5.2 a litre. In the other islands, namely Andrott and Kalpeni, the retail selling price will be reduced by around Rs 15.3 per litre." Oil Minister Hardeep Singh Puri wrote in a post on X. He also thanked IOC "for extending the benefits of completion of cost recovery of capital expenditure and inter-island price rationalisation to the people of Lakshadweep by reducing fuel prices." 

"The move will improve #EaseofLiving and #EaseofBusiness for the people and ensure a bright future for the islands, which are poised to become major hubs of global tourism. Truly #ViksitBharat. It is #ModiKiGuarantee that all parts of the country benefit from good governance,” he said.