MALÉ, Maldives — The Asian Development Bank (ADB) has approved a $50 million (MVR 772.5 million) emergency loan to help the Maldives maintain essential services and secure fuel imports amid rising global oil prices.
The funding, provided under the ADB’s Energy Security Emergency Assistance Project, will support diesel imports for electricity generation and water desalination, as well as food and medical logistics, inter-atoll transport and waste management.
ADB said the conflict in the Middle East has pushed up fuel prices while affecting tourist arrivals, putting additional pressure on the Maldives’ finances. Diesel accounts for 94% of the country’s electricity generation.
Official government figures highlight a steep surge in energy costs during the first quarter of 2026:
- Total Fuel Imports: Reached $240 million in Q1 2026, marking a nearly 50% increase from $161 million spent in the same period of 2025.
- Diesel Expenditure: Rose to $171 million, up from $116 million in Q1 2025.
- Petrol Expenditure: More than doubled to $48 million, compared to $22 million in Q1 2025.
Monthly fuel expenditure also rose to around $116 million, compared with approximately $50 million before the conflict.
The $50 million ADB loan complements a $40 million allocation approved by the World Bank in May, bringing total emergency multilateral financing arranged for Maldivian energy security to $90 million this year.
The combined funds will serve as vital budgetary support, enabling the government to maintain key public utility operations, preserve transportation networks across dispersed atolls, and cushion the economy against severe external shocks.
