Fuel import costs rise to $116 million amid Middle East conflict
Ali Shareef said the government continues to provide fuel through subsidies and noted that the cost of maintaining those subsidies has also increased.
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Ali Shareef said on Tuesday that the conflict in the Middle East has significantly increased the Maldives’ fuel import costs, with monthly expenditure rising from approximately $50 million to $116 million.
Speaking at a press conference held at the President's Office, the minister said increases in oil prices linked to the regional conflict had directly affected fuel procurement costs in the Maldives.
According to figures released by the ministry, monthly fuel expenditure increased from an average of $50 million before the conflict to $116 million.
Ali Shareef said the government continues to provide fuel through subsidies and noted that the cost of maintaining those subsidies has also increased.
Additional details on fuel expenditure were provided by Ahmed Ali, Director General at the ministry.
According to Ahmed Ali:
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Electricity generation across the Maldives requires approximately 8,000 barrels of diesel per day
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Annual diesel consumption totals around 2.9 million barrels
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Fuel procurement costs reached MVR 10 billion during the past year
Ahmed Ali said reducing dependence on fossil fuels remained the main long-term response to rising fuel prices.
He stated that increasing the use of renewable energy sources was necessary to reduce exposure to fluctuations in fuel costs.
According to the ministry, efforts are underway to increase renewable energy production, with the government targeting 33 per cent of national energy consumption from renewable sources by 2028.
