The Government has announced plans to establish a national fuel reserve system aimed at ensuring long-term energy security and resilience against global supply disruptions.

The announcement was made by Minister of Finance and Planning, Moosa Zameer, during a press briefing at the President’s Office. He explained that the initiative comes in response to ongoing instability in global markets, particularly tensions in the Middle East, which have led to fluctuating fuel prices and increasing challenges in securing consistent supply.

To address these risks, the Government has decided to develop a strategic fuel reserve capable of safeguarding the country against sudden shortages. The project will be implemented under the President’s directive, with consultations planned with key stakeholders, including the Maldives Monetary Authority (MMA).

Minister Zameer revealed that the reserve system will be established across three regions of the country and is intended to store enough fuel to meet national demand for up to one year. He added that the project will be carried out under a five-year plan. We are currently assessing whether the first phase can be completed within two years. It is a critical and necessary step.

At present, the Maldives relies heavily on fuel imports, primarily from the Middle East. However, ongoing regional conflicts have disrupted supply routes, prompting the Government to explore alternative sources and strengthen domestic preparedness.

Fuel storage is currently centred at the Funadhoo terminal near Malé, which supplies diesel and petrol to public services, resorts, and private users. The facility has a storage capacity of approximately 291,000 tonnes of diesel and 59,000 tonnes of petrol. Plans are now underway to shift and expand operations to Thilafushi in order to enhance capacity and improve distribution efficiency.

Meanwhile, jet fuel for Velana International Airport and other domestic airports continues to be supplied by the State Trading Organisation (STO).