The Minister of Climate Change, Environment and Energy, Ali Shareef stated that costs of fuel importation to the Maldives have greatly risen due to the Middle East conflict.
He stated this while speaking at a press conference held at the President’s Office by the Ministry of Climate Change, Environment and Energy, concerning work done in the energy sector.
As the Maldives is highly dependent on fuel, the change in market price of fuel impacts the country both directly and indirectly. The Middle East conflict in particular, has raised fuel prices exponentially.
Minister Ali Shareef stated that the government spends a great amount on fuel importation annually. While the government subsidises fuel, a substantial portion of the state budget has been allocated for importing fuel due to the Middle East conflict, the Minister informed.
“The government is spending a lot on fuel. Fuel is currently available via a government-subsidised model. The cost for this from the state budget has risen exponentially.” he stated.
The Director General of the Ministry of Climate Change, Environment and Energy, Ahmed Ali stated that, 8,000 barrels of diesel per day have been allocated to provide electricity to inhabited islands. This is about 2.9 million barrels a year. Ahmed Ali detailed that, prior to the Middle East conflict, USD 50 million was spent on fuel importation monthly.
However, this figure has now risen to USD 116 million, he stated. He noted that, in order to solve this problem, the focus should be on utilising renewable energy generated in the Maldives rather than relying on imported diesel or fuel.
Director General Ali stated that, the Maldives highly depends on fuel to produce energy.
For instance, in 2025 alone, USD 647.29 million was spent on fuel importation, comprising of 10 percent of the Gross Domestic Product (GDP) of the country. He added that this amount could otherwise be allotted to social and economic development projects, such as developing schools or hospitals.
“As the Maldives has no proven fossil (fuel) reserves, and greatly depend on imported fuel, every little change to the fuel market has an impact on the country.” Ahmed Ali stated.
He added that the government aims to bring renewable energy usage to 33 percent by 2028. In addition to opting for renewable sources of energy, Ahmed Ali stated that energy wastage should be minimised to reduce reliance on imported fuel within the country.