Maldives Reverses Fuel Price Hike for Public Transport, Fishermen

In a move aimed at shielding essential services from the impact of rising global fuel prices, the State Trading Organization (STO) has announced it will continue supplying diesel and petrol to public transport operators and public ferry service providers at pre-fixed rates. 

The decision comes in the wake of STO's recent price adjustment for diesel sold to private businesses across the Maldives, a revision attributed to the escalating conflict in the Middle East, which has disrupted international oil markets and driven up import costs. 

Despite these external pressures, STO emphasised that fuel prices at its FSM fuel stations in the Male’ area remain unchanged, and consumers in the atolls will also continue to receive fuel at previous rates. 

In a detailed statement, the organisation reaffirmed its commitment to ensuring uninterrupted access to fuel for critical public services without imposing additional financial burdens on operators or the general public.

The government’s “Fahi Hakatha” programme, which provides subsidised fuel to fishermen, will also remain unaffected, ensuring continued support for the vital fisheries sector. 

Petrol will continue to be sold at MVR 16.01 per liter, while diesel remains at MVR 17.54 per liter in the capital region. 

These measures align with broader government efforts to stabilise the domestic fuel market, as highlighted by the Minister of Finance and Planning Moosa Zameer. 

He revealed that the government plans to utilise anticipated profits from STO—estimated at around MVR 1.5 billion for the year—to cross-subsidise fuel pricing, effectively channeling a portion of state-owned enterprise earnings back into public welfare. 

“We are now planning to use one part of STO’s profit as a government subsidy,” Minister Zameer stated, clarifying misconceptions about recent price fluctuations. 

He further explained that STO purchases fuel based on a barge-loading system that calculates the average price over a 3–4 day period, making real-time price adjustments impractical. Unlike many nations that revise fuel prices weekly or monthly, Maldives adopts a more measured approach, prioritizing stability over volatility. 

This strategy, officials say, helps buffer the nation’s fragile economy and remote communities from the full brunt of geopolitical shocks in global energy markets.