The State Trading Organisation (STO) will absorb the rising cost of global oil to ensure fuel prices in the Maldives remain stable for consumers, Moosa Zameer, Minister of Finance and Planning, has announced.
The measure comes in response to a surge in global oil prices, which have doubled due to the ongoing military conflict in the Middle East.
Finance Minister emphasised the government’s commitment to minimising the impact of the international crisis on the Maldivian public. He confirmed that there have been no disruptions to the country’s fuel supply schedule and that the Maldives is facing no difficulty in procuring oil.
Outlining the government’s strategy to control domestic fuel prices, Zameer said the first layer of protection is the substantial subsidy already provided by the government on fuel.
Should global prices rise further, the government’s second option will be to cover the additional cost by absorbing it into STO’s future profits. “If prices rise further, STO’s profits will be subsidised and the additional costs will be absorbed,” Zameer said.
He added that due to these interventions, fuel price changes in the Maldives have remained minimal compared with the significant fluctuations seen on the global market.
To strengthen the country’s fuel security, Zameer also revealed that STO’s transport capacity is being expanded. Alongside its existing 24,500 metric tonne oil tanker, two additional vessels, each with a capacity of 22,000 metric tonnes, are expected to arrive in the coming days.