Piracy risk drives LPG price rise

The price of a 10 kilogram gas cylinder has increased by Rf 40 to Rf225, reports Haveeru.

Such cylinders are commonly used for cooking purposes in most Maldivian houses.

Chief Accountant at Maldive Gas Muneer Mohamed told Haveeru that the price increase was due to a spike in international prices, particularly Liquefied Petroleum Gas (LPG) shipments from Saudi Aramco, a factor he related directly to increased shipping costs brought on by increasing threat of piracy in the Indian Ocean.

“The shipping costs have hiked by 25 percent and a gas tonne that earlier sold for US$900 in the international market has increased to US$940,” he told Haveeru.

Prices could drop in 3-4 months on the back of low demand during the European summer, he adeed.