STO Secures New Fuel Shipment, Dismisses Shortage Fears Amid Price Hikes

The State Trading Organisation (STO) has received a fresh shipment of fuel, with another consignment en route, in a move to quell public concerns over potential shortages. The national trading company has assured there is no current deficit in fuel supply. The announcement comes against a backdrop of sharply rising global fuel and gas prices, driven by ongoing conflict in the Middle East. The Maldives imports high-grade refined petrol and diesel, and local prices have risen significantly in response to the international market trends. STO explained that its fuel prices are based on a weighted average of imported shipments, a pricing mechanism previously outlined by Finance Minister Moosa Zameer. This system means changes in global market prices directly influence domestic costs. To mitigate the impact on consumers, the government plans to utilize subsidies drawn from STO's profits, with officials noting that fuel in the Maldives is still being sold below current global market rates. Separately, STO is arranging a new shipment of gas. Its subsidiary, Maldive Gas, is currently selling gas in limited quantities due to increased demand.