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Petrol, diesel prices reduced by Rs 15.3: Details

Mar 17, 2024, 02:54 pm IST

Kavaratti: Public sector oil marketing company, Indian Oil Corporation  Limited(IOCL) has reduced the price of petrol and diesel by Rs 15.3 per litre in the islands of Lakshadweep. Petrol and diesel prices have been reduced by Rs 15.3 per litre on Andrott and Kalpeni islands and Rs 5.2 a litre for Kavaratti and Minicoy in Lakshadweep islands.

The petrol price in Kavaratti and Minicoy has been cut to Rs 100.75 per litre from Rs 105.94 previously and that in Andrott and Kalpeni to Rs 100.75 a litre from Rs 116.13. Similarly, diesel rates have been revised to Rs 95.71 a litre in Kavaratti and Minicoy from Rs 110.91 earlier and to Rs 95.71 in Andrott and Kalpeni from Rs 111.04 previously.

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The Indian Oil Corporation Limited (IOCL) is the supplier of petrol and diesel to four islands in Lakshadweep: Kavaratti, Minicoy, Andrott, and Kalpeni. 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.

‘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 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. 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. This will result in a reduction of the 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,’ Union Petroleum ministry said in a social media post.

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Mar 17, 2024, 02:54 pm IST

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