Former economic minister warns Maldives may face USD 1 million daily increase in fuel import costs

Former Economic Minister Ahmed Mohamed (Andey) says the ongoing conflict in the Middle East could increase the Maldives’ daily fuel import bill by USD 1 million, warning that the country faces severe exposure to global oil price shocks.

He made the remarks on Monday evening as crude oil prices surged past USD 120 per barrel in the world market.

Speaking to Sun, Andey said the Maldives’ electricity generation, transport and freight sectors are almost entirely dependent on imported fuel, making the economy extremely vulnerable to sudden spikes in global oil prices.

He noted that the Maldives imported USD 710 million worth of oil last year, roughly 20 percent of total imports. Before the current crisis, crude oil was trading at around USD 70 per barrel, but with prices now exceeding USD 100, the increase amounts to 40–50 percent, he said.

In a post on X, Andey wrote:  

“Oil has crossed $100. For the Maldives that could mean about $1 million more every day on fuel imports compared to pre‑crisis prices.”

ދުނިޔޭގެ ބާޒާރުގައި ސާފުނުކުރާ ތެޔޮ ފީފާއެއްގެ އަގު 100 އެމެރިކާ ޑޮލަރަށްވުރެ މައްޗަށް އުފުލިއްޖެއެވެ. މީގެ ސަބަބުން، މެދުއިރުމަތީގެ ހަނގުރާމަ ފެށުމުގެ ކުރިންހުރި އަގުތަކާ އަޅާބަލާއިރު، ތެޔޮ އެތެރެކުރުމަށް ދިވެހިރާއްޖެއިން ދުވާލަކު ކުރަންޖެހޭ ހޭދަ ގާތްގަނޑަކަށް 1 މިލިއަން…

— Ahmed Mohamed (AM) (@ahmedMDV) March 9, 2026

He said that if prices remain at current levels, the Maldives’ annual fuel expenditure could rise by USD 300–350 million, translating to an additional USD 1 million per day.

Andey added that the impact of rising oil prices extends far beyond energy costs. Higher fuel prices increase the total import bill, intensify demand for foreign currency and place pressure on reserves, he said.

He further noted that the costs of electricity generation, land transport and air transport will all rise as a result.

“Maldives is not only affected by global political shocks as a geopolitical phenomenon. Rather, such events result in higher oil prices, increased costs of importing goods and difficulties in obtaining foreign exchange,” he said.

For small, tourism‑dependent economies like the Maldives, Andey said global upheavals are felt first through energy price spikes and foreign exchange shortages, rather than direct disruptions to trade flows.