Fiji’s economy may face significant challenges amid rising global tensions that could disrupt oil supplies and trigger a spike in fuel prices. As the cost of transport, food, and overall inflation increases, both households and businesses are expected to feel the impact severely.
Inia Seruiratu, the Leader of Opposition, emphasized that Fiji’s heavy dependence on imported fuel and goods makes the country particularly vulnerable to geopolitical events. This warning comes in the wake of recent developments, including rising US oil prices following an attack on Venezuela.
“Rising fuel prices will directly impact transport costs, food prices, and overall inflation,” Seruiratu stated, highlighting the ripple effect that global supply chain disruptions could have on local economies. He pointed out that the strain on household budgets and businesses would be significant unless preventive measures are taken.
Fiji’s exposure to global market fluctuations is compounded by reliance on imports and remittances. “Shocks overseas can quickly translate into higher prices domestically and affect the remittance flows that many families depend on,” Seruiratu noted.
Reflecting on past experiences, he criticized the government’s reactive approach to fuel price spikes. He called for more robust planning to tackle inflationary pressures proactively, instead of merely reacting after costs have risen.
Seruiratu suggested that the immediate focus should be on safeguarding key sectors such as tourism and providing support to households, small businesses, and agriculture to cushion them from prolonged price increases. He also advocated for treating energy security as a national security issue, underscoring the need for greater investment in renewable energy and diversification of supply to mitigate the impacts of global shocks.
Furthermore, he asserted that the Parliament must play a crucial role in ensuring the government is prepared and engaged in long-term planning to make decisions that serve the best interests of all Fijians during times of increased global risk.
Amid the challenges, there remains a glimmer of hope that with strategic planning and investment, Fiji can better safeguard its economy against external pressures, fostering resilience for the future.
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