IOC cuts fuel prices by Rs 15 in Lakshadweep as infra levy ends

NEW DELHI: State-run IndianOil on Saturday slashed petrol and diesel rates by up to Rs 15.3 per litre in Lakshadweep islands, marking the sharpest fuel price cut ever in the country.
The move comes within weeks of prime minister Narendra Modi posting pictures of his visit to the islands on January 24 that went viral on social media and set off buzz the government is moving to develop Lakshadweep as a tourist haven to counter Maldives amid worsening bilateral relations.
The reduction in fuel prices will ease the cost of living for the islanders and also go a long way in creating a positive atmosphere for investors as the Union Territory looks to become a hotspot for tourists.
Indianoil reduced the prices by removing Rs 6.90 per litre charged for the last three years towards recovery of capital expenditure on infrastructure at Kavaratti and Minicoy for transporting and distributing fuel to the remote islands as well as low or unviable volumes.
“Since the full recovery of capital expenditure has now been achieved, this element is being removed from the prices of petrol and diesel. To equate the price of all islands, the available margin of Rs 7.60 (9.60 plus 10% VAT) a litre has been distributed across the four islands based on their sales volume,” the oil ministry said.
In Andrott and Kalpeni islands, both petrol and diesel prices have been reduced by Rs 15.30 per litre, while prices have gone down by Rs 5.20 in Kavaratti and Minicoy islands. Petrol price in Kavaratti and Minicoy has been cut to Rs 100.75 per litre from Rs 105.94. In Andrott and Kalpeni, the price has come down 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.
“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.

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