Fuel prices must be allowed to rise: Zameer

Minister of Finance Moosa Zameer has stated that he believes fuel prices in the Maldives must be increased.

The Minister made these remarks while speaking at a press conference held at the President's Office on Wednesday afternoon.

Minister Zameer stated that global fuel prices remained low yesterday, according to rates on the international market platform, Platts. He noted that the Maldives procures fuel based on Platts rates and highlighted that average prices have trended downward, even when measured against benchmarks such as Brent crude. Furthermore, he affirmed that the government is closely monitoring market fluctuations resulting from the ongoing conflict in the Middle East.

Addressing the hike in fuel prices, the Minister stated that everyone must accept that an increase was inevitable. Zameer noted that while questions had been raised previously regarding why prices had not been adjusted sooner, the decision to maintain lower rates at that time was based on the costs of existing fuel shipments in stock.

Regarding the matter of rising fuel prices, I believe we must all accept that an increase is inevitable. Previously, I was questioned as to why prices had not yet been raised. At the time, I stated that we would not increase prices on the existing shipment. We had already adjusted our rates in anticipation of that specific shipment. Furthermore, I have previously provided a detailed explanation regarding our current stock, how fuel pricing is calculated, and our inventory management procedures.

Minister of Finance Moosa Zameer

Highlighting the complexities of fuel pricing in the Maldives, the Minister noted that countries like the UAE review and publish fuel prices on a monthly basis. He explained that price adjustments in the Maldives are similarly determined by evaluating current stock levels, cash flow requirements, and necessary rates of return. The Minister further assured that despite any fluctuations in market prices, the government remains committed to providing subsidies for critical sectors, such as the fishing industry.

The Minister further stated that while the most recent shipments were acquired at higher costs, average prices could be maintained if global rates decline in the future. Minister Zameer noted that although there is a general consensus on the necessity of a fuel price hike, the government is closely monitoring the situation to determine the implementation strategy and identify which specific industries will be affected.