Government to stabilize fuel prices by utilizing STO's projected profits alongside state subsidies
Minister Zameer has assured that there are no fuel shortages in the Maldives despite rising global oil prices driven by the conflict in the Middle East. To stabilize domestic prices, the government has decided to utilize State Trading Organization (STO) profits alongside existing government subsidies. Furthermore, the Minister confirmed that additional tankers carrying essential fuel supplies are scheduled to arrive in the Maldives within the next five days.
President Dr. Mohamed Muizzu (R) and Finance Minister Moosa Zameer (L) attend a ceremony where the government awarded various development projects. | President's Office | Presidents Office
The government has announced that it will stabilize fuel prices amid rising global costs driven by the ongoing conflict in the Middle East. This will be achieved by utilizing State Trading Organization (STO) projected profits in addition to existing government subsidies.
During a press conference held on Thursday by the committee established by President Dr. Mohamed Muizzu to coordinate matters related to the conflict, Minister of Finance and Planning Moosa Zameer stated that despite the rise in fuel prices in the Maldives, the situation remains stable and fuel management is under control.
Clarifying that fuel prices are not being intentionally hiked, Minister Zameer stated that the fluctuations are the result of adjustments made following comprehensive market analysis.
Minister Zameer stated that there will be no shortage of fuel supplies, noting that a State Trading Organization (STO) vessel is expected to arrive in Male' within the next five days. He further added that another vessel is scheduled to depart for the Maldives on Thursday night after completing its fuel loading.
Furthermore, Minister Zameer stated that the interests of the general public and businesses would be taken into account, and that a decision has been made to control fuel prices.
Minister Zameer stated that, in addition to subsidies, it has been decided to maintain stable fuel prices by utilizing the projected profits of STO.
The plan involves utilizing STO's profits to manage subsidies. For instance, the government will provide subsidies while anticipating STO's financial performance. If the company generates a profit of, for example, 1.5 billion, we are looking into cross-subsidizing and absorbing a portion of those earnings to offset costs.President Dr. Mohamed Muizzu
Minister Zameer’s remarks come at a time when petrol and diesel prices in the Maldives have risen significantly. Additionally, the government has sought India's assistance in securing the country's fuel supply.
