STO announced last night that arrangements have been made to provide fuel for public transport and ferries at the same price as before.
STO increased the price of fuel sold to private businesses following the multi-fold increase in the price of oil and gas in the global market due to the ongoing war in the Middle East. They later announced a change to the decision, with fuel sold to providers of public transport and ferries being made exempt from the price hike.
STO further said that under the government's 'Fahi Hakatha' initiative to provide fuel to fishermen, they will continue to receive fuel at subsidized prices.
"No changes have been brought to the price of fuel at FSM fuel sheds in the Male' area. Arrangements have also been made to provide fuel to those operating fuel sheds in the atolls through purchasing fuel from STO at the same prices as before," STO stated.
STO stated that these measures are being taken to ensure petrol and diesel are provided in a manner that prevents the general public from facing additional financial burden.
STO has brought no further changes to fuel prices since the increase brought in effect earlier this month in response to rising fuel prices globally.
In the Male' area, a litre of petrol is currently priced at MVR 16.01, and a litre of diesel at MVR 17.54.
In a press conference held on March 12, Finance Minister Moosa Zameer stated that steps have been taken to ensure essential services remain available to the public without disruption during the war.
Minister Zameer stated that in addition to the subsidies the government provides to STO for fuel imports, it has been decided to further cross-subsidize fuel using a portion of the profits the government receives through the company.
"We have now planned to give one part of STO's profit, for example, as a subsidy from the government. In addition to that, if we anticipate that STO's profit will be MVR 1.5 billion this year, we are trying to see if we can absorb the cost by cross-subsidizing a part of that profit," he said.
"In reality, when STO last increased fuel prices, it did not reflect the actual change that came to the market. It was much lower than that, and some people spoke about it while being mistaken."
Minister Zameer stated that when STO loads fuel onto barges, the price is calculated based on the average price of 3-4 days. Therefore, he said that determining the price of fuel is a very difficult task and that "prices are not increased just like that." He also noted that unlike other countries, the Maldives does not constantly change fuel prices.
