MACL Raises Jet Fuel Prices; Airfares Expected to Rise

The Maldives Airports Company Limited (MACL) has increased the price of jet fuel sold to aircraft, citing rising international oil prices and higher import costs. The adjustment marks one of the steepest single‑step increases in recent years and reflects the broader volatility in global energy markets.

MACL Managing Director Ibrahim Shareef confirmed that the new selling price for jet fuel is USD 1.69 per litre, up from USD 1.19. The 50‑cent jump represents a 42% increase, immediately affecting airlines operating through Velana International Airport and other MACL‑managed facilities.

Shareef noted that the price revision was unavoidable due to sustained upward pressure in the global oil market. The State Trading Organization (STO), which supplies jet fuel to MACL, imports refined petroleum products primarily from Oman. As international crude and refined product prices rise, the Maldives faces direct cost pass‑throughs.

International jet fuel prices have risen sharply in recent weeks, largely due to the escalating conflict in the Middle East. These disruptions have tightened the supply of refined fuels including jet fuel across global markets. These pressures have pushed global jet fuel benchmarks to some of their highest levels since the post‑pandemic recovery, leaving fuel‑dependent economies like the Maldives specially vulnerable.

Fuel makes up a major share of airline operating expenses and are to face higher operating costs, and many are expected to adjust fares on selected routes to offset the increase. The impact will be felt most sharply by smaller regional operators with tighter margins, but even larger international carriers may revise pricing structures if elevated fuel costs persist. As a result, air ticket prices are likely to rise, especially on routes where competition is limited or aircraft operate at lower load factors.

As a fully import‑dependent nation, the Maldives has limited ability to buffer against global price shocks. STO’s reliance on Omani suppliers means local prices closely track international market movements, with little room for domestic stabilization.