Ex-Economic Minister Ahmed Mohamed (Andey) states that the current turmoil in the Middle East may raise the Maldives’ daily fuel import expenses by USD 1 million, cautioning that the nation is highly vulnerable to fluctuations in global oil prices.

He commented Monday night as crude oil prices climbed above USD 120 per barrel globally.

In a conversation with Sun, Andey noted that the Maldives’ electricity production, transportation, and freight industries rely heavily on imported fuel, which renders the economy highly susceptible to abrupt increases in global oil prices.

He mentioned that the Maldives brought in USD 710 million in oil last year, accounting for about 20 percent of overall imports. Prior to the ongoing crisis, crude oil was priced at approximately USD 70 per barrel; however, with current prices surpassing USD 100, the rise represents a 40–50 percent increase, he stated.

In a message on X, Andey stated:

"Oil prices have surpassed $100." For the Maldives, this could result in an additional $1 million daily in fuel import costs compared to prices before the crisis.

He mentioned that if prices stay at present levels, the Maldives' yearly fuel costs could increase by USD 300–350 million, which equals an extra USD 1 million each day.

Andey noted that the effects of increasing oil prices go well beyond just energy expenses. Rising fuel costs raise the overall import expenses, boost the need for foreign currency, and exert strain on reserves, he stated.

He also stated that the expenses for electricity generation, land transportation, and air transportation will all increase as a consequence.

In small, tourism-reliant economies such as the Maldives, Andey noted that international turmoil is initially experienced through increases in energy prices and shortages of foreign currency, rather than immediate interruptions to trade.