On Saturday, the state-run Indian Oil Corporation (IOC) announced significant reduction in petrol and diesel prices for Lakshadweep islands. As reported by ANI, the petrol and diesel price have dropped up to 15.3 Rs. per liter, marking the sharpest fuel price cut ever witnessed in the country.
The decision to reduce prices comes after Prime Minister Narendra Modi's recent visit to the islands on January 24, which created a lot of buzz on social media. People started talking about the government's plans to boost tourism in Lakshadweep to compete with the Maldives, especially with the strained relations between the two countries. This price cut will make life easier for the people living on the islands, as it will lower their living costs. It's also good news for investors, as it could make Lakshadweep more attractive for tourists.
Indian Oil made this possible by getting rid of a Rs 6.9 per liter charge that had been added to fuel prices for the last three years. This charge was meant to cover the cost of building infrastructure for fuel transportation in places like Kavaratti and Minicoy, where it's hard to get fuel to. Now that the cost has been recovered, they've removed this charge from petrol and diesel prices. The oil ministry explained that they've also adjusted prices to make sure they're fair across all the islands, taking into account factors like the volume of fuel used.