The Ministry of Petroleum and Natural Gas (MoPNG) has announced a substantial decrease in fuel prices for the gorgeous Lakshadweep Islands, which is a great respite for both locals and visitors. With immediate effect, both gasoline and diesel prices have dropped, providing much-needed relief to the residents of the island.
The news of the reduction in fuel and diesel rates for Andrott and Kalpeni islands (by Rs 15.3 per litre) and Kavaratti and Minicoy islands (by Rs 5.2 per litre) was shared by the ministry on social media platform X. It is anticipated that this action will lessen the financial strain on the people who live on these islands, who mostly depend on fuel for daily activities and transportation.
Petrol and diesel prices in Lakshadweep reduced by Rs 15.3/litre, effective March 16.
Cost element removed for fuel transportation infrastructure. Retail prices cut by Rs 6.90/litre.@aditya942000 Modiji Lakshadweep ko Maldives hi banakar manege
— Rohit Saini (@rohits_bn) March 16, 2024Indian Oil Corporation Limited (IOCL), the supplier of petrol and diesel to the four islands in Lakshadweep, played a pivotal role in implementing the price reduction. Although IOCL has depots in Minicoy and Kavaratti, the fuel that is delivered to these islands comes from the IOCL facility in Kochi, Kerala. While Andrott and Kalpeni islands are supplied with barrels from the Kavaratti depot, retail outlets at Minicoy and Kavaratti receive direct supply via pipelines from these depots.
Fuel prices have decreased as a result of the removal of a component totaling Rs 6.90 per litre from the price buildup intended to recover capital expenditures paid over the previous three years in the depots located in Kavaratti and Minicoy. This component has been removed from the price of gasoline and diesel following the completion of capital expenditure recovery.
Additionally, based on sales volume, the available margin of Rs 7.60 per liter has been split equally to maintain parity in fuel costs across all islands. Consequently, consumers in Lakshadweep, regardless of where they live in the archipelago, can now purchase petrol at Rs 100.75 per litre and diesel at Rs 95.71 per litre.
This reduction in fuel prices is expected to have a positive impact on the local economy and promote tourism in the region. By providing relief to consumers and enhancing accessibility, the initiative underscores the government’s commitment to the welfare of Lakshadweep residents and the development of the region as a popular tourist destination.
