STO brings in new shipment of oil as global prices continue to surge

K. Funadhoo.

The State Trading Organization (STO) has successfully secured new fuel shipments to address supply concerns in the Maldives, following weeks of global market volatility triggered by regional conflicts involving Israel, the United States, and Iran. Although prices surged significantly—impelling an 18–26 percent local increase—the government maintains that there is no imminent shortage. To stabilize the economy, authorities are leveraging subsidies and utilizing STO profits to maintain current retail rates while exploring international assistance from India. Meanwhile, experts and political figures are advocating for immediate energy conservation measures to mitigate the potential long-term fiscal impact of this ongoing crisis.

STO has confirmed the arrival of new oil shipments to maintain steady national fuel supplies.
Regional conflict initiated in February 2026 has caused significant global price increases, heavily impacting the Maldives.
The government is actively utilizing subsidies and STO profits to shield consumers from excessive fuel price hikes.
Diplomatic efforts are being directed toward India to secure long-term fuel import stability.
Experts recommend immediate national energy conservation measures to preserve resources during the crisis.

State Trading Organization (STO) has brought a new shipment of oil to the Maldives, following weeks of supply disruptions and sharp price increases driven by global market instability.

Oil supplies have been affected worldwide after the outbreak of war involving Israel, the United States and Iran in February. As prices spiked in more than 85 countries, the Maldives ranked among the ten most affected. Fuel Supplies Maldives (FSM), a subsidiary of STO, raised local fuel prices by 18–26 percent during this period.

Petrol and diesel prices have reached record highs in some islands.

In a statement on Saturday, STO said there is currently no shortage of imported fuel in the Maldives. The company confirmed that a new shipment has arrived and another is en route. STO also noted that an additional shipment of gas is being brought in.

Four days after the conflict began, Economic Minister Mohamed Saeed said on March 3 that the Maldives would not face interruptions in fuel and gas supplies. Since then, prices have continued to rise, prompting the government to hold domestic fuel prices steady by using STO’s expected profits in addition to existing subsidies. The government has also sought assistance from India to secure fuel imports.

Economists warn that prolonged conflict could have a significant impact on the Maldivian economy. Former President Mohamed Nasheed has urged the government to consider conservation measures such as scheduled power cuts and reduced road traffic to manage fuel consumption.

By Azhaar Abdul Azeez

Writer