MIFCO says oil can price hike reflected business realities, reversal made for public interest

MIFCO Managing Director and CEO Brigadier General (Rtd) Farhath Shaheer said Wednesday that the company’s brief increase in the price of oil fish cans was based on business realities, and the subsequent reversal was made in the public interest.

MIFCO on Monday raised the price of a can from MVR 17.50 to MVR 18.50, citing higher production costs caused by rising global oil prices due to the Middle East conflict. However, the company reversed the decision shortly after, restoring the previous price and stating that the move was taken after considering public opinion and the cost of living.

At a press conference on Tuesday, Economic Minister Mohamed Saeed said the price hike had been implemented without informing the government, and implied that the government intervened to bring the price back down.

Speaking to Sun, Farhath said MIFCO is a company owned by the people and run with public funds, and therefore must prioritise the interests of the people. He said ensuring the company’s long‑term sustainability is also in the public interest.

Farhath said the global economic slowdown and rising oil prices had sharply increased production costs. “The change in the price of oil cans was taken from a business perspective, taking into account these facts in the business environment. Being a state‑owned enterprise, you have to look at the realities of the business,” he said.

He added that while business considerations are important, the company must also consider the needs of the public. After reviewing the situation, MIFCO decided to keep the price as low as possible and will continue working with relevant authorities for the benefit of the people.

To reduce costs amid global market pressures, MIFCO has shortened official working hours at its head office and administrative centres, from 8:00am to 4:00pm previously, now reduced to 8:00am to 2:00pm. The company has also implemented cost‑cutting measures across its operations.

MIFCO on Wednesday limited the sale of oil fish cans due to low stock levels, issuing a maximum of one case per customer for both individuals and businesses.