Oil ministry frees LDO trade

The petroleum ministry has approved removing light diesel oil (LDO) from the purview of the Solvent Raffinate and Slop (Acquisition, Storage and Prevention to use in Automobiles) Order 2002, which will enable free trade in the petroleum product without having to procure licences.

LDO and furnace oil (FO) were earlier brought under the 2002 order as a substantial price difference between these two products and diesel used in automobiles offered an incentive for adulterating diesel with the two cheaper petroleum products.

"Over the years, the price difference between LDO and diesel has come down to negligible levels while the price of FO is still about Rs 10 per litre less than diesel. Hence, LDO does not enjoy any significant price advantage over diesel for adulteration," a statement by the petroleum ministry said.