Just over an hour after the Russian president Vladimir Putin announced a “special military operation” in Ukraine, world oil prices soared to record highs.
On Thursday, 24th February, it was reported that the West Texas Intermediate Crude price shot up by 4.19% reaching USD96 per barrel. Meanwhile, Brent Crude which measures international activity in Europe reached USD101.25 by midnight.
As the war has erupted between Russia and Ukraine, the geopolitical tensions have carried alarming implications on international oil prices.
“We expect crude oil prices to remain volatile and rise from current levels if geopolitical concerns do not materially ease,” a report from Kotak Institutional Equities on Wednesday, 23rd February, read.
Meanwhile, Moody’s has also highlighted concerns over oil prices stating that “if prices hold at current levels or rise further, cost pressure would further increase for a host of industries and household purchasing power would diminish, dampening the pace of the global recovery.”
The Russia-Ukraine tensions have impacted heavily on the global oil markets and this will become reflective soon in the Maldives as well.
The Maldives exclusively relies on oil imports for various purposes, and due to importing from foreign destinations, any variation in the purchasing price will be reflected in the selling price as well.
This has been the reason why the petrol and diesel prices in the Maldives shift their per liter price values occasionally.
The most recent revision to oil prices was made on 13th February 2022, when the State Trading Organization (STO) declared diesel will be sold at MVR13.04 per liter and petrol at MVR12.98 per liter.
The State Trading Organization (STO) is the exclusive oil importer to the Maldives, and they adjust selling prices based on the prices in the global oil market.