Fuel prices in Maldives jump by 26% amid Middle East conflict

State-run Fuel Supplies Maldives (FSM) has raised fuel prices by up to 26 percent amid global shocks to oil prices as the US and Israel’s war on Iran continues for a sixth day.

In a statement on early Thursday, the State Trading Organization (STO), the parent company of FSM, announced that the price of petrol has been raised from MVR 13.50 to MVR 16.01 per liter – marking an 18 percent jump.

Meanwhile, the price of diesel from MVR 13.92 to MVR 17.54 per liter – marking a 26 percent jump.

This marks the single biggest fuel price hike in recent history.

The move comes after traffic through the Strait of Hormuz, the narrow shipping lane between Iran and Oman through which around a fifth of global oil and gas supplies normally passes, effectively ground to a halt on Saturday after the US and Iran launched joint attacks on Iran.

Tehran retaliated by striking neighboring countries, including energy infrastructure, forcing the shutdown of Qatar’s liquefied natural gas production and Saudi Arabia’s largest oil refinery.

At least four tankers were ​also targeted in or near Hormuz, prompting many ship insurers and charterers to suspend transit in and out of the Gulf.

The closure triggered a surge in oil and gas prices – with Brent ​rising above USD 84 per barrel at one point, the highest level since July 2024 – and sent stock markets tumbling, particularly in Asia, as investors braced for a severe economic ⁠shock.

The Maldives’s heavy reliance on imports makes it especially vulnerable to such external economic shocks. Experts warn the impact of the current conflict could be worse than the Covid-19 pandemic if it drags on.