And now, almost two years into the Russia-Ukraine conflict leading to increased fuel prices, the State Trading Organisation (STO) has announced a decrease in oil prices, bringing good news to consumers and cab drivers alike.
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Since the beginning of the conflict between Russia and Ukraine in 2022, international sanctions on Russia, a major oil and gas exporter, have severely restricted its ability to export these critical resources. The instability caused by the conflict has not only affected the availability of oil but also increased the cost of its transportation and insurance, further exacerbating the price hike. As a result, countries worldwide have experienced significant increases in fuel costs since 2022, impacting their economies and driving inflation.
As the fuel price hike started affecting nations globally, the Maldives also saw an increase in fuel prices, which directly led to an increase in taxi prices in the Maldives. Not only was the hike in fuel prices felt due to the increase in cab fares but local businesses also felt the pinch as higher expenses for transportation and production increased, which in turn was passed down to the consumers. With this, in addition, to the Maldives, even globally the situation has led to an overall rise in the cost of living, putting additional pressure on residents already grappling with economic challenges brought on by the COVID-19 pandemic.
And now, almost two years into the Russia-Ukraine conflict leading to increased fuel prices, the State Trading Organisation (STO) has announced a decrease in oil prices, bringing good news to consumers and cab drivers alike. This is, however, not the first time that STO has announced a price reduction, as December of 2023 also saw a price reduction in fuel prices since the global increase in prices in 2022. With these new prices, consumers can expect a litre of diesel with a price reduction of MVR 0.70 and a litre of petrol with a price reduction of MVR 0.35. With this price reduction, consumers can now expect a litre of diesel to be sold at MVR 13.92 and a litre of petrol at MVR 12.98. Although the fuel prices have been seeing a lower price since 2022, the Maldives is yet to see the positive impact as the prices of goods and services continue to remain high regardless of the fuel price dropping since then.
