Maldives earns $90 million from bunkering services, Saeed tells parliament

Minister of Economic Development and Trade Mohamed Saeed has said the Maldives has generated USD 90.07 million in revenue from international bunkering services since their introduction in September 2024, although earnings remain below an earlier projection of USD 400 million annually.

Saeed disclosed the figure during Wednesday's parliamentary sitting while responding to a no-confidence motion submitted by the opposition Maldivian Democratic Party (MDP).

International bunkering services were launched in the Maldives on 10 September 2024, with the government identifying the sector as a potential source of foreign currency revenue.

Saeed had previously stated that providing bunkering services to just one per cent of vessels travelling through shipping routes north and south of the Maldives could generate at least USD 400 million, equivalent to approximately MVR 6.1 billion, annually.

However, nearly two years after the service was introduced, reported cumulative revenue has yet to reach that amount.

The shortfall was among the concerns raised in the no-confidence motion submitted in August with the signatures of 13 members of the MDP parliamentary group.

Responding to the allegations, Saeed said the bunkering operation was being conducted by the State Trading Organisation (STO) and suggested that MPs could seek further clarification directly from the company.

"If there is any further confusion about this, you can summon STO's managing director and question him as well," Saeed told Parliament.

He added that the Economic Ministry was not directly responsible for supplying fuel to vessels.

"It is not our ministry that goes there and refuels the vessels," he said.

Saeed nevertheless defended the government's progress in developing the bunkering sector, saying previous administrations had discussed the opportunities presented by international shipping routes but had not established the service.

He said the current administration had taken steps to introduce bunkering operations, including bringing in two vessels to support the service.

"It was this government that brought in two vessels and started bunkering services, which have now generated USD 90.07 million in revenue," Saeed said.

He said the amount was equivalent to approximately MVR 1.39 billion.

Saeed acknowledged that revenue had not reached USD 400 million but maintained that the sector had the potential to generate substantially more income over time.

"It is not USD 400 million. There are opportunities for even more than that. However, achieving major results requires significant work and time," he said.

The minister also attributed the progress to measures taken by the government to address the economic conditions it inherited from the previous administration.

According to figures previously shared by Saeed, bunkering services generated MVR 112 million during their first year of operation, which he described as equivalent to USD 12 million.

He also previously reported that revenue had reached MVR 730 million, or approximately USD 47 million, by the end of March.

The latest figure of USD 90.07 million represents the total revenue reported by the minister since the service began.

The MDP's no-confidence motion raised concerns about Saeed's performance as Economic Minister, including the government's failure to achieve the projected earnings from bunkering services.