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Government - Policy
No licence restriction for light diesel oil

Our Bureau

New Delhi, Oct. 10 To facilitate smooth sale of light diesel oil (LDO), the Government has removed it from the list of petroleum products that require prior licence.

According to an official statement, “the Petroleum Minister, Mr Murli Deora, has approved a protocol to remove LDO from the purview of Solvent Raffinate and Slop (Acquisition, Storage and Prevention of use in Automobile) Order, 2000.”

“This would do away with the requirement of procuring licences and other restrictions imposed in the said order, and thus facilitate smoother sale/business of LDO in the country,” the statement said.

LDO along with Furnance Oil (FO) was earlier brought under the purview of the order as a substantial price difference between these two products and diesel offered an incentive for unscrupulous dealers for using LDO/FO as adulterants, it said. “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. LDO did not enjoy any significant price advantage over diesel for adulteration,” the statement said.

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