Maldive Gas says it has no power over procurement as gas shortage worsens

Customers have been reporting unusual delays in receiving gas orders from state‑owned Maldive Gas, with company officials saying the issue is beyond their control and caused by delays in supply.
Employees told Sun on Sunday, on condition of anonymity that the company’s stock has been depleted for several days. Gas deliveries are currently being fulfilled through Villa Gas, a private supplier with large reserves stored in Thilafushi.
A senior official from Maldive Gas said on Monday that all procurement transactions are now handled by the State Trading Organization (STO). This arrangement was introduced after corruption cases emerged within Maldive Gas, shifting all purchasing authority to STO.
According to the official, Maldive Gas now submits requests for quotation to STO, and STO determines the purchase price. He added that STO is currently buying gas from Villa Gas at significantly higher prices, and because Villa must be paid in dollars, purchasing at bank rates results in major financial losses for the company.
The official attributed the ongoing shortage to STO’s negligence, noting that this is the longest supply disruption in the company’s history. While minor shortages have occurred before, they were typically resolved within a few days.
Gas cylinders of Maldive Gas. (File Photo/Sun)
Explaining the usual operational process, he said the company typically assesses the next day’s demand and transports the required stock to Male' in advance due to limited storage capacity in the city. “If today is Monday, they prepare Tuesday’s stock and bring it in on Tuesday,” he said.
However, with no new supply arriving through STO and the company relying entirely on Villa Gas, Maldive Gas is now unable to maintain its usual stock levels. Deliveries are only possible when Villa releases gas.
With Ramadan approaching, the official expressed concern that the company has yet to receive its own shipment. He stressed that Maldive Gas has no authority to resolve the issue, as all decision‑making power now rests with STO.
Sun has been attempting to obtain a statement from STO for the past two days, but no official response has been issued.
Maldive Gas, a subsidiary of STO, has faced corruption allegations in the past. In April, the Anti‑Corruption Commission (ACC) confirmed it was investigating the disappearance of approximately USD 250,000 from an USD 800,000 gas shipment ordered in October 2024. The company has been under scrutiny since the previous MDP administration.
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