The Indian Oil Corporation (IOC) has made a significant reduction in petrol and diesel prices by up to Rs 15.3 per litre in the Lakshadweep islands. This marks the most significant cut in fuel prices the country has ever seen. The move comes after Prime Minister Narendra Modi’s visit to the islands on Jan 24 that went viral on social media. It sparked rumors that the government is planning to develop Lakshadweep as a tourist destination to counter Maldives amid worsening bilateral relations. The reduction in fuel prices will help ease the cost of living for the islanders and create a positive environment for investors. This is a significant step in making the Union Territory a hotspot for tourists. IndianOil reduced the prices by removing Rs 6.9 per litre, which was charged for the last three years towards recovering capital expenditure on infrastructure at Kavaratti and Minicoy for transporting and distributing fuel to the remote islands, as well as low or unviable volumes. The oil ministry said, “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 7.6 (Rs 9.6 plus 10% VAT) a litre has been distributed across the four islands based on their sales volume.”

Leave a Reply

Your email address will not be published. Required fields are marked *

AlphaOmega Captcha Classica  –  Enter Security Code