Price of oil is rising in international markets. However, the price of oil is still the cheapest in Maldives from this region.
Since Maldives does not have the capabilities to stock adequate amounts of oil at present, price changes in world markets will be reflected in Maldives the soonest. To be on the safe side, STO has started programs to increase the fuel storage capacity of Maldives.
Speaking to Miadhu News the MD of STO Ahmed Shaheer said that they are selling oil with a really small margin. He said that STO sells oil to fishermen and state owned companies with a very small profit margin.
“Hence, the price fluctuations in world markets will be reflected in Maldives as well. That’s how things work. However, now there is a huge difference. We reduced profit margin based on a request made by the president. So, even if price hikes are there, it will be relatively small” said Shaheer.
The oil prices in world market has been rising since oil producing countries agreed to limit the supply of oil. In some countries, the price has increased by 7 percent. Large oil producing countries like Saudi Arabia and UAE are increasing the price of oil.
According to a report published yesterday, it is possible that the price of a crude oil barrel might reach 100 dollars as well by 2018. If that happens that is a 45 percent increase compared to the current rates.