No room to reduce jet fuel prices, STO notifies MACL

The price of jet fuel supplied to Maldives Airports Company Limited (MACL) cannot be reduced, the government's main wholesale and retail arm State Trading Organization (STO) has said notified MACL.

The response follows complaints by airline companies that the price of jet fuel at the country's main gateway, Ibrahim Nasir International Airport (INIA), is too high.

Speaking to Sun, Managing Director of STO Adam Azim said STO’s prices to MACL are reasonable and that MACL puts a 40 percent profit margin on the jet fuel re-sold to the airlines.

“We sell at a low price, but MACL sells it at a higher price. I have told Finance (Ministry) that we will not be able to sell if STO suffers a loss on jet fuel,” Azim said.

MACL was unavailable for comment at the time of press.