Minister of Finance and Public Enterprises, Moosa Zameer, has said the government is assessing two locations in the Greater Malé region to establish a long-term fuel reserve.
Zameer stated that the Ministry of Finance and Public Enterprises, the Ministry of Economic Development, Transport and Trade, and the State Trading Organisation (STO) are collaborating to establish a national fuel reserve. He highlighted that ongoing global market disruptions, particularly in the Middle East, lead to fuel price volatility and supply challenges.
In response, the government will establish a fuel reserve to enhance preparedness for sudden market changes.
According to the minister, the project will proceed in three phases. The current focus is on identifying suitable locations, including two in the Malé area, with surveys scheduled to begin next week. Following the surveys, a comprehensive plan addressing design, financing, and feasibility will be prepared and submitted to the President. Further progress will depend on the President’s decisions.
“A fuel reserve is essential,” Minister Zameer said, adding that the final plan will also determine the stock volume to be maintained.
He referenced India’s established fuel storage system and noted that, once operational, the Maldives’ reserve will serve national needs, with any surplus potentially available for lease.
The proposed reserve is expected to store enough fuel for one year. Development will follow a five-year plan, with Phase One targeted for completion within two years.
Currently, imported fuel is stored at Funadhoo, near Malé, to supply diesel and petrol to public services, resorts, and private users. The facility has a capacity of 291,000 tonnes of diesel and 59,000 tonnes of petrol. Jet fuel for Velana International Airport and other domestic airports is also supplied through STO.
