News In Brief

Fuel prices increase after tsunami and Middle Eastern instability

16 Mar 2011, 2:37 PM

Minivan News

Petrol prices have risen Rf 0.87 and diesel by Rf 0.96 a litre on the back of growing instability in the Middle East and panicked Asian markets after Japan’s earthquake, tsunami and nuclear meltdown threat.

The State Trading Organisation (STO) raised petrol to Rf 12.67 a litre and diesel to Rf 12.61, the second increase of the year. Local retailers followed suit.

The Maldives spends 25 percent of its GDP on fuel and is among the most vulnerable countries in the world to oil price rises. A government official recently speculated that were the price of fuel to double, the Maldivian economy would “collapse within hours”.

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