President Ibrahim Mohamed Solih has announced that the government plans to reform its oil subsidy policy and give the subsidy to the citizens who need it the most.
He made the announcement in his televised address to the nation on the occasion of Maldives' 57th Anniversary of Independence.
President Solih said that the government has exceeded its budget for oil subsidies this year as MVR 341.5 million was included in the budget for the whole year.
However, he said that until June of this year the government has spent MVR 910.3 million on oil subsidies alone.
President Solih further said that this value could rise to MVR 1.95 billion at the end of this year.
He said that while one government oil subsidy is given to decrease the prices of electricity to the public and the other subsidy is given to fishermen.
President Solih said that with the current situation facing the global market, it is best to prepare for all scenarios and that this is the time to take economic action.
He then said that the government had decided to change its oil subsidy guidelines and that it would release subsidies to the ones who need them most.
The President added that the government has already begun its work on implementing these changes.
