Bunkering Sector Generates USD 80 Million Over Two Years

The Maldivian government has generated USD 80 million in cumulative revenue from its newly established offshore bunkering operations over the past two years, Minister of Economic Development, Transport and Trade, Mohamed Saeed, said.

Two years after launching its offshore bunkering operation in the northern Ihavandhippolhu atoll, the Maldivian government has reported cumulative revenues of USD 80 million from the sector, a figure that falls drastically short of the financial projections originally stated by Minister Mohamed Saeed.

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Citing the latest progress reports during a press conference held by the President’s Office yesterday, Minister Saeed highlighted that the USD 80 million (MVR 1.2 billion) represents an entirely new stream of foreign exchange for the Maldives. However, the figures reflect a significant gap when compared to early economic targets.

Before the service officially launched in September 2024, Minister Saeed said during a political gathering in July 2024 that bunkering would inject USD 400 million into the nation’s GDP within its first full year. 

“What structural impact will bunkering bring to the economy? In the first year alone, from the launch of bunkering services at the end of July through July of next year, our projections indicate that, God willing, a brand new USD 400 million will be injected into our existing USD 6.5 billion GDP”, Minister Saeed said, addressing a People’s National Congress gathering on July 7th, 2024.

However, addressing questions regarding the missing revenue, he defended the venture by framing the USD 400 million figure as a broad long-term objective under the administration’s broader economic vision. He maintained that the USD 80 million generated represents entirely new foreign currency revenue for the Maldives, primarily driven by low sulphur fuel and diesel sales managed through the State Trading Organisation (STO) and Maldives Ports Limited (MPL).

At roughly 10 per cent of the annual target after two full years of active operations, the disparity has drawn heavy criticism from the opposition. Opponents argue that generating USD 400 million annually was an unrealistic projection given the current infrastructure, which relies on chartered offshore supply tankers, rather than an established onshore port facility.