Maldives Expands Subsidised Diesel Program to Yellowfin Tuna Fishing Boats

Yellowfin tuna fishermen in the Maldives finally got something skipjack crews have long taken for granted: subsidised diesel. The Ministry of Fisheries and Ocean Resources announced on March 23 that the government's subsidised fuel programme, administered through the State Trading Organization, would be extended to cover yellowfin tuna fishing vessels, bringing them in line with skipjack fishing vessels already eligible for the subsidised rate.

The backdrop is a fuel price shock that rattled every corner of the Maldivian economy. Fuel prices surged as global oil prices climbed amid the escalating US-Israel conflict with Iran, which disrupted shipping across the Gulf region. It marked the single biggest fuel price hike in recent history, coming after traffic through the Strait of Hormuz effectively ground to a halt following US and Israeli attacks on Iran. Under the revised STO rates, petrol jumped MVR 2.51 per litre to MVR 16.01, while diesel rose MVR 3.62 per litre to MVR 17.54 — a 26 percent increase.

STO had previously announced exemptions carving out relief for certain groups after implementing a sharp business price hike on March 16. Public transport providers, atoll petrol sheds reliant on STO purchases, and the government's "Fahi Hakatha" fishermen's initiative were shielded from the full increase. The March 23 announcement extended that protection to yellowfin vessels specifically, with subsidised diesel made available at two Fuel Supplies Maldives facilities: the FSM Terminal in Hulhumalé and the FSM Shed in K. Himmafushi.

The move carries particular weight for the Bodu Kanneli Masveringe Union, the Union of Yellowfin Tuna Fishers, which had long demanded fuel subsidies as part of a broader campaign for parity with the skipjack sector. As one captain from Nilandhoo put it plainly: "Fuel subsidy is also not something we get, but they get it. The pole-and-line tuna fishers who land their catch at Kooddoo and Felivaru get free ice too. They get fuel subsidies, too. We get none of that."

The government's response, however welcome, arrived with caveats. The Union of Yellowfin Tuna Fishermen reported that fishing boats in the Malé area had not received fuel at the subsidised prices STO promised, with STO and MIFCO having assured fishermen that subsidised diesel prices of MVR 16 to MVR 17 per litre would be maintained under the Fahi Hakatha programme. The union issued a direct call to action: "We call upon the government to immediately ensure that fishing vessels can access fuel at rates that allow them to continue operations."

Fishermen unable to go to sea at current prices face direct losses to household income. The sector's pain extended beyond fuel: the company Ensis separately halted the issuance of free ice to fishermen amid rising fuel costs, adding another operational burden to fleets already squeezed at the pump.

For vessels that supply fish to MIFCO, the Maldives Industrial Fisheries Company had indicated diesel rates of MVR 16.54 per litre, with vessels over three tonnes eligible for MVR 16.04 per litre, against the general public rate of MVR 17.54. Minister of Economic Development and Trade Mohamed Saeed sought to reassure the industry, stating that STO is maintaining the country's fuel storage reserves "in such a way that it will not be depleted."

Yellowfin tuna vessels typically undertake extended fishing trips, returning to shore only briefly to land their catch. Fishermen do not lightly forgo a week's income, and when more than 20 boats chose to remain idle, it reflected the gravity of the situation. Whether the subsidised fuel at Hulhumalé and Himmafushi reaches boats in the Malé area in practice will determine whether this policy announcement translates into boats back on the water.