President Ibrahim Mohamed Solih has announced that preparations are underway to make the necessary policy changes in order to provide fuel subsidies to only those in need.
“I would like to say that the government has begun work on implementing the changes. This is an essential burden for the Maldives to carry, in order to reach a sustainable path of healthy economic growth,” said the President, announcing the government’s decision to reduce the cost of electricity and change the government’s subsidy policy for fishermen.
In his address on the occasion of the 58th Independence Day, the President stated that the government’s estimates for fuel subsidies have increased significantly this year. He said that although MVR 341.5 million was allocated in this year’s budget for fuel subsidies, the government had spent MVR 910.3 million on the subsidy by the end of June.
The President noted that the cost of fuel subsidies has spiked dramatically in the wake of the Russia-Ukraine war.
“It is important to consider all the impacts of this prolonged war. If the situation continues, it is now estimated that the government will have to spend a total of MVR 1.95 billion on fuel subsidies by the end of this year,” he said. “The time is now to change economic policy in relation to this situation.”
