Govt to use STO profits to subsidise fuel prices

Finance Minister Moosa Zameer said on Thursday that the government has decided to use part of the projected profits of the State Trading Organization (STO) to subsidise fuel prices.

The announcement was made during a press briefing held by a cabinet committee established to address economic challenges arising from the conflict in the Middle East.

The conflict escalated following military actions involving the United States, Israel and Iran, which have affected global oil markets and led to increases in fuel prices.

Zameer said the government’s priority is to reduce the impact of rising fuel prices on households and businesses.

According to the minister, the government is reviewing several options to increase fuel subsidies.

“Our plan involves using STO’s profits to provide subsidies. We are projecting STO’s financial performance. If the expected profit is MVR 1.5 billion, we are looking at using part of those earnings to absorb increases in fuel prices,” Zameer said.

He also said the government is exploring additional fuel supply markets to ensure continuity of supply.

Zameer added that the government does not expect a disruption to fuel supplies. He noted that STO recently acquired an additional fuel transport vessel.

The STO fleet now includes:

The minister said these measures are part of efforts to maintain fuel supply and manage price increases linked to developments in the global energy market.