The State Trading Organization (STO) has moved to allay public concerns, asserting that there is no shortage of imported fuel in the Maldives and that existing stocks will be effectively managed despite rising global prices.
The reassurance comes as oil and gas costs surge worldwide, driven by the ongoing military conflict in the Middle East, which has increased the market price of crude oil and Liquefied Petroleum Gas (LPG), consequently, the cost of the high-standard refined petrol and diesel imported into the country.
While the soaring prices of various commodities have sparked concerns over potential difficulties in securing fuel, STO, in a reply to PSM News, confirmed that the supply chain remains secure. The company stated that two additional shipments of fuel are scheduled to arrive next week, ensuring that the current stock can be managed without any disruption to supply.
Additionally, a separate shipment of gas is also expected, which will resolve the temporary measure of selling 5 kg gas cylinders at a discount in place of 10 kg cylinders—a move enacted this week by subsidiary Maldive Gas to manage increased demand until the new shipment is received.
The government has acknowledged that the global price hike is directly reflected in local fuel prices, with the Minister of Finance and Planning Moosa Zameer noting that domestic prices are determined by the weighted average of imported shipments.
In response, the government has announced it is working to utilise a portion of STO's profits to subsidise and absorb some of the price increases, emphasising that fuel in the Maldives is still being sold at a cheaper rate compared to the current world market price.