STO Fuel Sector Drives Growth as Bunkering Revenue Hits $47 Million

The State Trading Organisation (STO) has reported significant growth in its fuel business, identifying it as the most successful segment of the company's operations during the first quarter. A primary catalyst for this expansion is the recently launched bunkering service, a strategic initiative designed to diversify the Maldivian economy and establish new state revenue streams. Since its official launch in September 2024, the service has generated USD 47.22 million within its first three months of operation. Minister of Economic Development, Transport and Trade, Mohamed Saeed, has highlighted the sector's strong financial performance, noting that the service is already producing substantial income despite not yet reaching its full operational potential. According to STO’s first-quarter report, the company recorded total revenue of USD 355.14 million. The fuel sector provided the largest contribution to this figure, seeing a 27 percent increase compared to the previous quarter. This growth was driven by a combination of rising global oil prices and a surge in bunkering volumes, with fuel sales increasing by 18 million litres over the final quarter of the previous year. A significant portion of the current income is attributed to the introduction of low-sulphur oil, which has seen a steady rise in monthly demand. The service is currently operated in collaboration with Vitol, an international firm specializing in bunkering operations. While bunkering is currently conducted offshore, the Maldivian government intends to scale the industry further. Future plans include the development of onshore facilities and the expansion of storage capacity to align local service standards with international benchmarks. Strengthening this sector remains a key priority for the administration as it seeks to bolster the national economy through high-value maritime services.