The Fiji government has ordered all ministries and agencies to cut fuel consumption from official vehicle use by about 30 per cent, in a move described as an immediate cost-control measure amid global petrol price pressures. A circular dated April 2, obtained by The Fiji Times, was issued by Permanent Secretary for Finance Shiri Gounder and directs agency heads to plan and monitor vehicle use to meet the reduction target.
Gounder said the directive is a proactive step to manage rising costs linked to international developments. “The recent conflict in the Middle East has triggered a major risk to global fuel supply with significant price hikes. This has translated into domestic fuel price increase which is expected to rise further,” he wrote in the circular, warning that broader cost pressures are anticipated across the economy.
Under the circular, agency heads are required to adopt specific measures to reduce official vehicle fuel use. The guidance includes carpooling within and across ministries, walking to nearby meeting venues, and improving coordination through advance vehicle bookings to minimise unnecessary trips. The Finance Ministry said the government is starting to tighten controllable expenditure, beginning with vehicle usage and fuel consumption “with immediate effect.”
The directive signals the first centrally mandated squeeze on everyday operational costs since fuel prices began rising again earlier this year. While the circular sets the overall reduction target and recommends practical steps, it does not lay out detailed enforcement mechanisms or a timeline for reviewing compliance, and it is unclear what monitoring or penalty regime — if any — will be applied to agencies that fail to meet the 30 per cent target.
Officials said the move is intended to be pragmatic rather than punitive: better trip planning and shared vehicle use are presented as ways to maintain essential services while curbing discretionary journeys. The Finance Ministry’s approach follows warnings from independent analysts and international observers that escalating tensions in the Middle East could further disrupt oil markets and push prices higher, increasing the cost of fuel-dependent services across government functions.
The decision also follows similar precautionary signals elsewhere in the Pacific. In March, the Cook Islands government moved to secure fuel and essential supplies as regional leaders grew concerned about spillover effects from the Middle East conflict on shipping and energy prices. Fiji’s directive is the latest example of Pacific administrations taking pre-emptive action to shield public finances and operations from volatile global energy markets.
Ministries and agencies have been told to begin implementing the measures immediately. The Finance Ministry’s circular, as obtained by The Fiji Times, frames the reduction as the first step in tightening controllable outlays; further instructions on other budget lines may follow if international price pressures persist.
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