President of Maldives, Ibrahim Mohamed Solih on Tuesday, July 26, announced restrictions on fuel subsidies by the government.
Subsidies are provided exclusively to necessary parties, while restrictions are effective barring supply to all equivalently.
Meanwhile, government is actively working on amending regulations to allow fuel subsidies on a need-based approach. Maldives head of state made the remarks while addressing the nation on the occasion commemorating the island nation’s 58th Independence Day.
He adds on counter-measures to assist economic recovery to pre-pandemic levels despite the blow amid Covid-19 pandemic and the Russia-Ukraine clash in 2022. T
he crisis continues to impact Maldives, while President Solih affirms on state’s commitment to maintain the country safe from the geopolitical conflict.
Moreover, he assures the island nation is not facing severe burnt from the demand hike and supply-chain pressure globally.
State’s expenditure on fuel meanwhile, reportedly exceeded the allocated budget.
Global fuel price bump catalyzed fuel expenses up to a cumulative spending of MVR910.3 million as of June 2022, while the budgeted expense for the year is MVR341.5 million.
“Estimates indicate Maldives will spend a total of MVR1.95 billion on oil subsidies by the end of 2022,” President Solih adds.
Maldives government extends subsidy on fuel to both fisheries and utility sectors.