Maldives plans strategic fuel reserve amid global oil volatility
Oil-dependent island nation plans to build national fuel reserve as Middle East tensions and global supply disruptions push energy prices higher
MALE, Maldives (MNTV) — The Maldives has announced plans to establish a national fuel reserve as the Indian Ocean island nation seeks to shield its economy from global oil price shocks and supply disruptions linked to geopolitical tensions.
President Mohamed Muizzu said the government is preparing a long-term strategy to build a strategic oil reserve, describing the initiative as a safeguard for a country that relies almost entirely on imported fuel for electricity generation, transport and tourism operations.
The reserve will be developed in phases over the next five to six years, with each phase expected to cost up to $150 million, according to government officials. Authorities said feasibility studies are underway to identify storage locations and operational requirements.
The move comes as global energy markets face renewed uncertainty following the Middle East conflict involving Iran, Israel and the United States, which has disrupted oil supply routes in the Middle East — a key source of fuel imports for many Asian and Indian Ocean countries.
Finance Minister Moosa Zameer said the Maldives currently maintains sufficient fuel supplies, with shipments of petrol and diesel scheduled to arrive from Singapore and Oman in the coming weeks. However, officials warned that the country remains vulnerable to external shocks due to its dependence on imported energy.
Fuel prices in the Maldives have already risen sharply in recent weeks following global supply disruptions. Authorities reported increases of between 18% and 26% for petrol and diesel across parts of the country, with some islands recording record-high fuel costs.
Rising fuel prices pose a significant challenge for the Maldives, where energy costs directly affect electricity prices, transportation, and tourism — the backbone of the country’s economy. Analysts say sustained price increases could increase inflationary pressure and strain government finances.
State-owned fuel supplier STO said there is currently no shortage of fuel and confirmed that additional shipments have already arrived, with more deliveries expected soon. Officials emphasized that the proposed reserve is intended as a long-term buffer rather than an emergency response to immediate shortages.
Strategic fuel reserves are commonly used by energy-dependent countries to protect against supply disruptions and price volatility. For the Maldives, officials say, such a reserve could provide critical stability in an increasingly uncertain global energy environment.
We must take charge of our narrative. Research indicates that 92% of their Muslim coverage is negative. Help us change that.
Have Your Say!
Have you been affected by the issues raised in this story? Please share your experiences by emailing haveyoursay@soundvision.com.
Please include a contact number if you are willing to speak to a Muslim Network TV’s representative. You can also get in touch in the following ways:
Tweet: @MuslimNetworkTV
