Easier access to light diesel oil for industries
Industries would not be required to obtain a licence to sell or purchase light diesel oil (LDO) for industrial applications.
By TNN |
NEW DELHI: Industries would not be required to obtain a licence to sell or purchase light diesel oil (LDO) for industrial applications. Petroleum minister Murli Deora has approved a proposal to remove LDO from the purview of the Solvent Raffinate and Slop (acquisition, storage and prevention of use in automobile) Order, 2000.
"This will do away with the requirement of procuring licences and other restrictions imposed in the order, thus facilitating smoother marketing of LDO in the country. The present decision has been taken in view of favourable views provided by the industry and technical bodies like Indian Institute of Petroleum, Dehradun and Indian Oil R&D Centre, Faridabad. A notification in this regard would be issued shortly," according to an official statement.
LDO along with furnace oil (FO) was earlier brought under the purview of Solvent Raffinate and Slop Control Order through an amendment, as a substantial price difference between these two products and high speed diesel (HSD) offered an incentive for unscrupulous dealers to use LDO/FO as adulterants.
Over the years, the price difference between LDO and HSD has come down to negligible levels while the price of FO is still about Rs 10 per litre less than HSD. Hence, LDO does not enjoy any significant price advantage over HSD for adulteration.
"This will do away with the requirement of procuring licences and other restrictions imposed in the order, thus facilitating smoother marketing of LDO in the country. The present decision has been taken in view of favourable views provided by the industry and technical bodies like Indian Institute of Petroleum, Dehradun and Indian Oil R&D Centre, Faridabad. A notification in this regard would be issued shortly," according to an official statement.
LDO along with furnace oil (FO) was earlier brought under the purview of Solvent Raffinate and Slop Control Order through an amendment, as a substantial price difference between these two products and high speed diesel (HSD) offered an incentive for unscrupulous dealers to use LDO/FO as adulterants.
Over the years, the price difference between LDO and HSD has come down to negligible levels while the price of FO is still about Rs 10 per litre less than HSD. Hence, LDO does not enjoy any significant price advantage over HSD for adulteration.
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