Bunkering service, touted as a USD 400M business, generates just USD 12M

The bunkering service launched by the Maldivian administration last year has generated MVR 192.15 million or USD 12.46 million to date, according to Economic Minister Mohamed Saeed.

Bunkering services launched in the Maldives on September 19, 2024. The service is run by the State Trading Organization (STO) and Maldives Ports Limited (MPL) in partnership with Swiss-based Vitol.

Saeed, who attended a Parliament sitting on Tuesday morning, was questioned by South Galolhu MP Meekail Ahmed Naseem, a lawmaker from the main opposition Maldivian Democratic Party (MDP), regarding earnings from the service.

The economic minister responded that the service has generated MVR 192.15 million in revenue, including MVR 17.36 million in taxes.

Saeed said that 83 percent of the revenue was generated from the supply of low sulfur fuel.

Saeed had previously said the administration plans to gradually develop the service to one that generates USD 400 million in revenues annually.

But a year in, the actual revenue generated from the service stands at USD 12.46 million.

When questioned by reporters back in April regarding why service was launched at such a small scale, Saeed said that the administration did not wait to build a port but launched offshore bunkering services because they did not want to make excuses and delay the project.

He also remarked that developing the bunkering facilities to international standards “might be easy to say, but is an enormous undertaking.”

Saeed said that the administration is already working on developing the facilities, adding that the administration will seek foreign investment if funding isn’t available in the domestic market.