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Fiji Reallocates $56 Million to Ease Fuel Price Pressure as Stocks Stay Steady

Fiji gas station featuring multiple fuel pumps under a large canopy with tropical palm trees in the.

Prime Minister Sitiveni Rabuka has moved to quell fears of a fuel shortage in Fiji while warning consumers that higher pump prices are likely to continue, announcing a FJ$56 million (US$39.95 million) government response after setting out detailed stock figures for the coming weeks. Rabuka told the nation the supply situation remained “stable” as of April 19, with about 45 million litres on land and a further 22 million litres expected to arrive before the end of April — bringing total available fuel for the month to roughly 67 million litres.

Those figures amount to close to half of Fiji’s national storage capacity, Rabuka said, and he stressed the projected fall in inventory by month-end is routine rather than a sign of crisis. With daily consumption running at roughly 2.5 million litres, he said normal usage would see stocks draw down to about 40 million litres — roughly 29 percent of capacity — by April 30 as terminals are emptied to receive fresh shipments safely. “This is part of the normal supply cycle,” Rabuka said, adding that the country was operating in “Phase 1 — a normal supply situation, but under pressure from high global fuel prices.”

Looking ahead, Rabuka said fuel suppliers have committed to deliver about 118 million litres in May, a level of imports that would lift national stock back to more than 59 percent of storage capacity once discharged. That commitment, he argued, underscores that the present challenge is not physical scarcity of fuel but the global price shock driving costs higher. He attributed the recent price rises to the war in the Middle East, disruptions associated with the Strait of Hormuz and the fact Fiji purchases fuel in US dollars, with international price swings passed through to domestic markets. The independent price regulator, the Fijian Competition and Consumer Commission (FCCC), increased retail prices on April 1 and Rabuka said another rise is anticipated in May.

On April 21, Cabinet approved the redeployment of FJ$56 million within the existing 2025–2026 Budget to cushion families, businesses and essential services from the impact of the global fuel crisis. Rabuka emphasised this is not new borrowing but a reprioritisation of delayed projects to provide immediate support. “Our focus is simple: protect livelihoods, maintain essential services, and support the most vulnerable,” he said, though he did not lay out the precise measures or beneficiaries in the initial announcement.

The update supplies the first concrete inventory picture to follow earlier warnings in March, when ministers and regulators flagged the risk of price spikes as tensions in the Middle East threatened global oil flows. Those earlier briefings assured consumers of adequate reserves but lacked the specific stock and shipment commitments now made public — details that clarify how long current supplies are likely to last and how May imports should stabilise storage levels.

How the FJ$56 million will be disbursed — whether through subsidies, targeted cash support, transport-sector relief or other measures — remains to be detailed by government departments. For now, households and businesses face an economy still exposed to volatile international markets: with consumption at about 2.5 million litres a day, the 67 million litres available in April equates to roughly four weeks’ use today but would fall to about 16 days’ worth by month-end unless the expected arrivals arrive on schedule.


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