Government delaying fuel price cuts until after council elections: Amru

The former Managing Director of STO, Hussain Amru, has stated that the government is delaying a reduction in fuel prices until the conclusion of the upcoming local council elections. He further asserted that the public cannot be relieved from their current hardships unless the government halts its wasteful spending.

Amru made these remarks while speaking at a press conference hosted by the opposition MDP.

Amru stated that the price of a barrel of crude oil on the global market has now risen above $110. He noted that even a single dollar increase in oil prices results in millions of additional rufiyaa being spent on fuel imports to the Maldives. Furthermore, as the government failed to provide direct answers to journalists' questions regarding fuel prices during a recent press conference, Amru offered a detailed explanation of the current situation.

Amru stated that the Maldives imports fuel on credit, with a repayment window of approximately six to eight months. Consequently, payments currently being made to suppliers are for fuel consumed six months ago, while the cost for current imports will not be due for another eight months. Therefore, he noted that an immediate and sharp increase in fuel prices is not a measure the government needs to take at this time.

Therefore, the most critical step for the government to take right now is not to impose such extreme hikes in fuel prices. These prices are being raised to secure funds for future fuel payments; however, increasing them so significantly and abruptly imposes immense hardship on the public. There is no justification for forcing fishermen to pay 27 to 30 Rufiyaa per liter of diesel. As far as we can see, the only outcome of this move is an increase in government revenue. During the press conference that day, it was stated that STO would not be making a profit and would instead reduce its margins to manage the situation. However, what was actually communicated was that STO’s current profits would be increased so that the government could then collect those funds.

Hussain Amru, the former Managing Director of STO

Amru further stated that the government is utilizing these funds for wasteful expenditures. He described it as a dangerous move for the administration to remain idle until the elections while other nations are taking proactive measures in similar situations. Amru noted that while the public is drowning economically, the government is solely focused on its own survival, asserting that such actions do not constitute good governance.

Amru has called on the government to implement immediate reforms, asserting that the public cannot be protected unless wasteful state spending and corruption are brought to an end.