Petrol and diesel prices have been reduced by Rs 15.3 per litre in Andrott and Kalpeni Islands and by Rs 5.2 per litre in Kavaratti and Minicoy. Hailing it as "Modi's Guarentee", Union Minister Hardeep Singh Puri stated: "I thank Indian Oil 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 Ease of Living and Ease of Business for the people and ensure a bright future for the islands, which are poised to become major hubs of global tourism. Truly Viksit Bharat."
In Lakshadweep, according to the Union Petroleum Ministry, Indian Oil Corporation Limited (IOCL) is responsible for supplying petrol and diesel to four islands: Kavaratti, Minicoy, Andrott, and Kalpeni. IOCL operates depots at Kavaratti and Minicoy, with products sourced from the IOCL depot in Kochi, Kerala.
Petrol and diesel are directly supplied to retail outlets on Kavaratti and Minicoy islands via pipelines from the respective depots. However, for the other two islands, Andrott and Kalpeni, supplies are facilitated from the Kavaratti depot using barrels, according to the centre.
An additional element of Rs 6.90 per litre has been incorporated into the price buildup of petrol and diesel to cover the capital expenditure incurred in establishing depots at Kavaratti and Minicoy in the Lakshadweep islands, where the volumes are very low and economically unfeasible.
"This element had been included in prices for the last 3 years. Since the full recovery of capital expenditure has now been achieved, this element is being removed from the prices of petrol and diesel. This will reduce the RSP of petrol and diesel by around Rs 6.90/litre (Rs 7.60/litre including 10% VAT), providing benefits to the customer," the Centre stated.