Fuel prices were hiked as a means of generating revenue because the government has run out of funds: Shamheed
Member of Parliament Dr. Shamheed has expressed concern over STO’s decision to hike fuel prices despite stable global market rates, noting that official statistics already indicate a sharp rise in the domestic cost of living. He characterized the price increase—which occurred shortly after the government announced the arrival of a lower-cost fuel shipment—as a strategic move to generate state revenue, a decision that has drawn widespread criticism from both the opposition and the general public.
Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumale' constituency, speaking during an appearance on Raajje TV’s "Fala Surukhee" program. | RaajjeMV | raajjemv
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumale' constituency, has stated that the State Trading Organization (STO) increased the prices of petrol and diesel because the current administration has run out of funds and is using the price hike as a means to generate revenue.
Speaking on RaajjeTV’s "Fala Surukhee" program, Shamheed stated that government statistics reveal a consistent month-on-month increase in the price of goods in the Maldives since late 2023.
Citing statistics released by the Ministry of Finance and the Maldives Monetary Authority (MMA), Shamheed highlighted that inflation is rising at a deeply concerning rate.
Since late 2023, the Maldives has experienced a consistent month-on-month increase in the cost of living. According to the latest data, the Consumer Price Index (CPI) has risen by 4 percent. Furthermore, the monthly overall essential commodity price index indicates that the prices of certain items have surged by as much as 10 percent compared to the previous month.Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumale' constituency.
The member stated that the government's sudden decision to hike fuel prices raises serious concerns, particularly at a time when the costs of food and other essential items are already escalating. He further noted that current fuel stocks were not purchased at higher rates, pointing out that global market prices have not yet risen to a level that justifies such an increase.
Shamheed stated that increasing fuel prices beyond the rates seen in the global market demonstrates the government's lack of funds. He further noted that this move is being utilized as a means for the government to generate revenue.
Less than 24 hours after President Dr. Mohamed Muizzu and Economic Minister Mohamed Saeed announced that a new shipment of low-cost fuel was en route to the Maldives, STO has hiked the prices of petrol and diesel.
The opposition has asserted that the recent hike in diesel and petrol prices in the Maldives was not necessitated by the ongoing tensions in the Middle East. Despite Economic Minister Saeed confirming that a new fuel shipment is currently en route to the Maldives and that cargo routes remain unobstructed, members of the public are expressing their disapproval, stating that the price increase is unjustifiable.
