Report: China to increase oil exports in May, Maldives among receiving countries

Reuters has reported that China is set to increase its oil exports, with the Maldives included among recipient countries, following a period of limited exports amid the ongoing conflict in the Middle East.

While the Maldives currently sources the majority of its fuel imports from Oman, the growing instability in the region presents a significant risk of disruption to these critical shipments. Oman accounts for approximately 98 percent of the country’s fuel imports, with China supplying only a relatively small share.

In the wake of conflict surrounding Israel, the United States, and Iran on February 28, the Maldivian government announced initiatives to diversify its fuel supply sources and reduce its heavy reliance on Oman in order to safeguard national energy security.

According to a Reuters report published on Wednesday, China has approved the export of 500,000 tonnes of fuel to destinations outside Hong Kong beginning next month. This move represents a policy shift after the country suspended most oil exports last month in response to the Middle Eastern crisis. Although some exports have since resumed this month, the allocation for the coming month is reportedly double the current volume.

The report identifies the Maldives, along with Australia, Bangladesh, Cambodia, Laos, Myanmar, New Zealand, and Sri Lanka, as key destinations for these shipments. Citing unnamed sources, Reuters noted that roughly 40 percent of the 500,000-tonne allocation will consist of diesel and jet fuel.

Since the onset of the conflict in the Middle East, the Maldives has been ranked among the top ten countries experiencing the sharpest increases in fuel prices. As a result, the State Trading Organization (STO), the government’s principal fuel importer, has been compelled to raise prices for both businesses and the general public.

In certain atolls, the price of petrol and diesel, which previously ranged between MVR 15 and MVR 16 per litre, surged to as high as MVR 30 per litre last month.

The conflict has also had a profound impact on the tourism sector, with reduced tourist arrivals. It has also led to the Maldives Airports Company Limited (MACL) increasing jet fuel prices over the past month. However, the government announced on Wednesday that coordinated efforts with the company have successfully reduced those prices once again.

The current administration has assured the public that, despite ongoing international disruptions, it remains committed to maintaining a stable and uninterrupted fuel supply for the country.