Fuel Imports Cost Maldives $648 Million, 10% of GDP Last Year

The Maldives spent USD 648.5 million on imported fuel last year, an amount equal to 10 percent of the nation's Gross Domestic Product. Minister of Tourism and Environment Thoriq Ibrahim presented the figure, stating it underscores an urgent need to shift toward sustainable energy. The expenditure, paid in foreign currency, highlights the country's deep dependence on diesel to power residential islands, tourist resorts, and industrial zones. Minister Thoriq, speaking at a press briefing, detailed the scale of this reliance: the nation currently uses 310 Megawatts of diesel generators in residential areas, 298 MW in resorts, and 30 MW in industrial zones. This infrastructure requires approximately 7,965 barrels of diesel every day, amounting to nearly 2.9 million barrels annually, solely to maintain basic electricity supply. With similar high consumption across the vital tourism sector, the economic drain and environmental impact present significant challenges. In response, the government has intensified efforts to reduce fossil fuel dependency. Under President Dr. Mohamed Muizzu's administration, a comprehensive national energy policy and roadmap have been officially released to guide the sector's development. Minister Thoriq acknowledged that renewable energy sources cannot yet fully replace diesel but emphasised the target of generating 33 percent of the archipelago's power from renewables. Key initiatives focus on deploying new generators, expanding electricity grids, and enhancing battery storage systems to stabilise the supply from renewable sources. To date, 157 new generators with a combined capacity of 115 MW have been delivered to various islands, improving power reliability. The government's commitment, he added, remains achieving 24-hour electricity for all inhabited islands and building a resilient, diversified energy future to reduce the national carbon footprint.