Govt moves to contain gas prices as shipments arrive

Economic Minister Mohamed Saeed has said new shipments of cooking gas are expected to arrive for Villa Gas and State Trading Organisation on Tuesday night.

Speaking at a press conference at the President’s Office, Saeed said the government is working to manage gas prices.

The statement follows an announcement by Villa Gas to increase retail prices from Thursday. Under the proposed changes, the price of a 10kg cylinder would rise from MVR 200 to MVR 350, while a 20kg cylinder would increase from MVR 450 to MVR 650.

Saeed said discussions have been held with both companies to address pricing.

“Both Villa and STO will receive an LPG shipment tonight. Our committee met with STO this afternoon to discuss how prices can be managed within a set range,” he said.

He noted that contract prices for gas are set on a monthly basis. According to information shared during discussions, the current rate set by Saudi Aramco is USD 757 per tonne.

Saeed said international prices have increased following recent adjustments, and new rates will be determined next month.

“In terms of LPG, we have identified options through discussions with both parties. We have narrowed these down to several possible solutions. A decision will be made soon. We will aim to avoid price increases where possible,” he said.

The government stated it is monitoring the situation to manage the impact on consumers and businesses.

Tourism and Environment Minister Ibrahim Thorig said there have been no discussions on changes to electricity prices at this stage.