Gov’t Implements Revised Fuel Rates for Private Distributors
Fuel prices rise significantly for private businesses
The State Trading Organization (STO) has introduced a significant increase in the prices of petrol and diesel supplied to private businesses, effective yesterday.
Fuel distributors across the country reported that STO has revised its bulk delivery rates under a tiered pricing structure that varies by region and transportation distance. Despite these differences, businesses say the changes reflect a sharp overall rise in costs.
In the Malé region, diesel prices increased from MVR 16.52 per litre to MVR 27.22, while petrol rose from MVR 15.00 to MVR 26.14 per litre within a day. The impact has been more pronounced in the atolls, where a trader from Noonu Atoll reported petrol prices reaching MVR 27.13 per litre and diesel at MVR 28.32 per litre.
The higher procurement costs are expected to drive retail fuel prices up further in the atolls compared to the Malé region, raising concerns among businesses about increased living costs and the price of goods and services.
The increase comes amid global market disruptions linked to ongoing conflict in the Middle East, including the closure of the Strait of Hormuz, a key oil transit route. The disruption has driven a surge of more than 40 percent in global crude oil prices, with the Maldives reported to be among the most affected countries.
Earlier this month, Fuel Supplies Maldives, a subsidiary of STO, raised retail fuel prices by between 18 and 26 percent. As a result, petrol increased from MVR 13.50 to MVR 16.01 per litre, while diesel rose from MVR 13.92 to MVR 17.54 per litre.
Fuel prices have since climbed further in some regions. In Addu City, petrol is now priced at around MVR 29 per litre, with diesel exceeding MVR 30 per litre in certain areas.
Minister of Economic Development Ahmed Saeed has stated that fuel and gas supplies will remain stable despite global uncertainties. The government has also sought assistance from India to help ensure a steady supply of fuel.
Meanwhile, Addu City Mayor Ali Nizar has raised concerns over the sharp rise in prices, stating that current rates appear high compared to global trends and calling for a review of pricing policies.
The government has announced plans to intervene by utilising STO’s projected profits alongside state subsidies, aiming to stabilise fuel prices and reduce the financial burden on the public.
