State Trading Organisation (STO) has decided to impose controls on fuel sales to domestic suppliers.
Managing Director of STO Hussain Amr stated Fuel Supplies Maldives (FSM) is selling fuel to locals at subsidised rates, in order to minimise the impact of global price hikes. However, he noted fuel is sold to resorts at market prices.
Amr stated some domestic suppliers are taking advantage of this by buying fuel at subsidised rates and selling to resorts at higher prices. Therefore, he said STO will limit the quantity of fuel sold to local suppliers and ensure fuel is sold based on local demand. He said STO is imposing these controls in order to prevent illegitimate fuel trade by local suppliers.
The government is undertaking several efforts to minimise the impact of the hike in prices of fuel and other commodities in the global market. As such, a large amount is being spent on fuel subsidies.