State Trading Organisation (STO) has decided to impose controls on domestic fuel sales to suppliers.
Managing Director of STO Hussain Amr stated that Fuel Supplies Maldives (FSM) is selling fuel to locals at subsidized rates, in order to minimize 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 subsidized 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. Moreover, STO is imposing these controls in order to prevent illegitimate fuel trade by local suppliers, according to Amr.
The government is undertaking several efforts to minimize the impact of the hike in prices of fuel and other commodities in the global market.
