The Fiji Labour Party has urged the Government to suspend or reduce the existing fuel tax, saying the relief package recently announced by the administration is too narrow to blunt rising living costs. Labour leader Mahendra Chaudhry described the measures as “selective” and argued a cut in fuel tax would deliver broader, more transparent relief across the economy.
Chaudhry welcomed aspects of the Government’s package but said it focused only on certain groups — notably bus commuters and a subset of electricity consumers — while leaving many households and businesses exposed to higher costs. “The suspension of the fuel tax as recommended by Labour all along was sensible as it would have impacted the entire economy,” he said. “It would have been transparent and equitable, not selective as with the current package.”
Pointing to the ripple effects of fuel prices, Chaudhry highlighted that relief limited to public transport and specific electricity users ignores those who rely on private vehicles, taxi operators, and businesses facing higher cartage and production costs. “There is no relief for those who travel to work by private transport. The cost of manufacturing will go up because of higher fuel prices, cost of market produce and other essentials will rise as a result of higher cartage costs. Taxi operators will get no relief,” he said, warning that these pressures would continue to push up prices across the economy.
Chaudhry also reiterated his call for a permanent increase to social assistance, saying the 50 per cent uplift recently announced for social welfare payments should not be temporary. He noted existing welfare rates remain below the poverty threshold and argued the increase should be made permanent to provide lasting support for the most vulnerable.
The Labour leader underscored the urgency of his demands by noting current fuel tax levels and forecast pump price movements. Fuel tax in Fiji presently stands at 20 cents per litre for diesel and 46 cents per litre for unleaded petrol, he said, and warned motorists that petrol prices at the pump are expected to rise again on May 1. That impending increase is central to Labour’s argument that relief should be applied in ways that reach all consumers and producers, not just specific beneficiaries.
The party’s stance adds to a wider debate over how best to alleviate cost-of-living pressures without undermining government revenue. While Labour frames a fuel tax suspension as a simple and equitable measure, any change would have fiscal implications for state coffers and public services funded by fuel tax receipts. There has been no public government response to Labour’s latest call at the time of Chaudhry’s remarks.
Labour’s intervention is the latest development in a continued national conversation about rising prices and targeted assistance. By pressing for a universal measure such as a fuel tax suspension and a permanent increase to social welfare, the party is seeking to broaden the scope of relief efforts ahead of the anticipated May price adjustment.
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