Fuel Import Costs Rise by USD 66 Million Amid Middle East War

The government’s spending on fuel imports has increased by USD 66 million due to the war in the Middle East.

Speaking at a press conference held at the President’s Office on the ministry’s work in the energy sector, Minister of Climate Change, Environment and Energy Ali Shareef said the Maldives’ fuel import costs had risen significantly as global oil prices increased in connection with the conflict in the Middle East.

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As a country heavily dependent on imported oil, fluctuations in global fuel prices directly and indirectly affect the Maldives. Ali Shareef said the government already spends a large amount annually on fuel imports and noted that state expenditure had risen sharply as fuel continues to be provided through subsidies.

“The government is spending heavily on oil. Oil is currently being provided through government subsidies. The required expenditure for subsidies from the state budget has increased tremendously,” he said.

Director General of the Energy Department Ahmed Ali said the Maldives requires around 8,000 barrels of diesel daily to provide electricity services to inhabited islands, amounting to 2.9 million barrels annually.

Ahmed Ali said monthly fuel import costs stood at approximately USD 50 million before the start of the Middle East war, but had now risen to USD 116 million.

He said the Maldives must reduce its dependence on diesel and imported fuel by increasing the use of renewable energy available in the country.

Ahmed Ali also noted that the Maldives spent MVR 10 billion on fuel imports in 2025 alone, accounting for around 10 per cent of the country’s GDP. He said the funds spent on fuel imports could otherwise be invested in social and economic development.

“Money meant for building schools in islands, building hospitals, and even setting up waste management centres is what we have to give abroad for fuel imports. Because things are this way, and since the Maldives is a place without any proven fossil reserves, our high dependence on imported oil means that any fluctuation in the global oil market affects the Maldives,” he said.

Ahmed Ali said the government aims to increase renewable energy usage to 33 percent by the end of 2028. He added that reducing energy waste and increasing the use of renewable energy sources available in the Maldives would help lower dependence on imported oil.

Speaking at a separate press conference later in the day held by the Special Cabinet Committee on Middle East Tensions, Minister of Finance and Public Enterprises Moosa Zameer said oil imports to the Maldives had been increased by 18 percent this year to prevent shortages and ensure fuel remained available to the public at reasonable prices.

He said fuel purchase prices were beyond the government’s control and expressed hope for an end to the war. Zameer added that the government’s current policy priority was to protect citizens from hardship caused by rising fuel prices.

He also said the government would continue maintaining different fuel prices for different sectors and had no plans to change the policy.