Bunkering generates MVR 192 million in first year, says Saeed

Minister of Economic Development and Trade Mohamed Saeed said on Tuesday that the state’s bunkering service has generated MVR 192 million (approximately USD 12 million) in revenue during its first year of operation.

The bunkering service, launched on 10 September last year, is managed by the State Trading Organisation (STO) and provides offshore fuel supply to vessels operating in Maldivian waters.

Responding to a question from Galolhu South MP Meekail Naseem in Parliament, Minister Saeed said the state had also collected MVR 17 million in taxes from the service within the same period.

Saeed noted that 83 per cent of the fuel supplied under the service was low-sulphur fuel, which had not previously been imported into the Maldives.

At STO’s Annual General Meeting in May 2024, the company’s Managing Director, Shimad Ibrahim, said that while operations began in Ihavandhippolhu, the Malé area had become the main centre of business activity.

“We started in Ihavandhippolhu, where activity remains limited. However, the results from the Malé area have been strong,” Shimad said.

He added that the company was working to improve its services to match the standards of competing countries and that discussions were ongoing with relevant authorities to address operational needs.

Shimad also noted that STO had provided bunkering services to one of the world’s largest shipping lines, including the supply of 1,200 tonnes of water.

“We have the confidence of major international shipping lines, and our ongoing transactions are progressing well,” he said.