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Maldives hikes fuel surcharge again as diesel price soars

Aishath Mihna Nasih
09 January 2017, MVT 09:49
STELCO building in the capital Male. MIHAARU PHOTO
Aishath Mihna Nasih
09 January 2017, MVT 09:49

State Electric Company (STELCO) has once more hiked the fuel surcharge, this time from 27 laari (MVR 0.27) to 38 laari (MVR 0.38) per electricity unit.

This is the second time the company increased the fuel surcharge within a month. Since February 2016, the value has been hiked a total of four times. The fuel surcharge was four laari per unit last September, after which the value was increased to 12 laari in November, and again to 27 laari since December.

The value was disclosed in an official statement by STELCO on its website.

The company currently purchases diesel at a rate of MVR 9.28 per litre. If the diesel rate per litre exceeds MVR 8, the energy authority had sanctioned STELCO to levy three laari from every additional 10 laari.

If the current fuel surcharge tariffs are maintained, an additional MVR 250 will be charged from electricity bills that amount MVR 1000.

The government had reversed the tariff hike for households in January in the wake of a public outcry. The president had vowed then to further lower the electricity rates as the tariffs were still considered too high. However, there have been no slashes in electricity rates ever since.

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