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

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.