The government has decided to increase ferry prices, citing the need for substantial subsidies for the Raajje Transport Link (RTL) ferry system.
This was revealed by Minister of Transport and Civil Aviation Mohamed Ameen while speaking at the Economic Committee of the People's Majlis on Tuesday.
The minister stressed that the government is required to slash subsidies for RTL services, as the current situation is unsustainable for the state.
Further, he clarified that only 20 percent is recovered while 80 percent needs to be subsidized, under the current module.
The minister also noted that MVR one billion is spent on subsidies for ferry services.
Highlighting that they are now working on reducing the subsidy level to 55 percent and increasing the recovery to 45 percent, Ameen noted that they have submitted proposals to the Economic Council to set prices to maintain RTL services.
Minister Ameen said that while MVR 48 million was subsidized in the first year, last year it increased to MVR 130 million.
He added that by the end of this year, it is expected to exceed MVR 280 million.
Further, he assured that they would not bring any changes to the RTL plan initiated by the former administration of Maldivian Democratic Party (MDP) and that the government would continue with that plan, which he described as a good plan.
RTL services are currently provided across nine atolls.
