Maldives Assures Fuel, Gas Supply Despite Global Shortage, Warns of Inevitable Price Hikes

The State Trading Organization (STO) is coordinating with other national oil importers to ensure a steady supply of fuel to the Maldives, even as global oil prices skyrocket following intensified military conflict in the Middle East.

In a statement to local media addressing growing public concern, STO’s Managing Director, Shimad Ibrahim, moved to allay fears of an immediate fuel shortage. He confirmed that the country's fuel storage facilities are robust and that there is currently enough supply to meet the nation's needs for the next two weeks. 

To maintain this buffer, additional shipments are scheduled to arrive next week, with specific vessels expected on the 20th and 23rd of this month.

However, Shimad issued a stark warning regarding the economic impact, stating that sharp price increases for consumers are unavoidable. 

"The issue is price. Maldives imports diesel and petrol, which is the cleanest refined oil. Its price has more than doubled since the outbreak of the war," he explained. 

The root cause is a more than 100 percent surge in the global price of refined oil, a direct consequence of the escalating conflict in the Middle East.

Currently, petrol is priced at MVR 16.01 per liter, while diesel is at MVR 17.54 per liter. The STO Managing Director indicated that if the volatile global situation persists, these prices are expected to rise even further. The price shock is not limited to vehicle fuel—costs for jet fuel, and cooking gas have also seen similar dramatic increases.

Shimad noted that while many countries have faced disruptions due to canceled insurance for oil shipments—a common occurrence in high-risk conflict zones—the Maldives has managed to continue its imports with full insurance coverage, thanks to coordinated efforts between STO and other importers like Hawks and Villa Group.

In a related development, STO also addressed the supply of cooking gas. Its subsidiary, Maldive Gas, is set to receive a new shipment next Friday. This comes after a period of high demand that led to the temporary sale of smaller 5-kilogram cylinders instead of the standard 10-kilogram size this week. 

The company is closely monitoring the international situation, which remains beyond its direct control, to ensure the continued flow of essential fuels to the archipelago nation.