Rising fuel costs push up freight and speedboat fares across atolls

With global oil prices climbing sharply, cargo vessels transporting goods from Male' to the atolls have begun increasing their freight charges.

Several operators have already revised their rates. A vessel serving Haa Alif Atoll has added MVR 5 per item to its previous price, while some vessels travelling to Laamu Atoll have increased charges by MVR 10 per item.

The changes are expected to affect retail prices in the atolls, as most rural businesses rely on these vessels to transport goods. Traders say the rise in freight costs will inevitably feed into the price of essential items.

Speedboat operators have also raised ticket prices following the spike in fuel costs. Tickets for nearby islands have increased to MVR 600, while fares to Faafu and Dhaalu Atolls have risen to MVR 900. Travel to Laamu and Thaa Atolls now costs over MVR 1,600. Some operators have additionally reduced the number of weekly trips.

The surge in global oil prices follows disruptions in the Middle East, where the Strait of Hormuz, one of the world’s most critical oil transit routes, has been effectively closed due to ongoing conflict. Although Maldives’ oil imports do not pass through the strait, the global market impact has pushed prices upward.

FSM, a subsidiary of STO, raised fuel prices for businesses on Monday, including rates for fuel delivered to atolls and fuel sold at the jetty. However, STO has since revised the decision, allowing public ferries and public transport providers to continue purchasing fuel at previous rates.

Despite this adjustment, speedboat fares have not yet been reduced. In some islands, petrol prices have climbed to MVR 29 per liter.