Cabinet has approved a $56 million (US$39.95 million) redeployment from the 2025–2026 Budget to blunt the impact of the global fuel shock on Fijian households, businesses and essential services, Prime Minister Sitiveni Rabuka announced on Friday. The move, authorised on April 21, 2026, is not new borrowing but a reprioritisation of funds from delayed projects, the government said.
Rabuka insisted that the country is not facing a fuel shortage even as prices bite. He set out the supply picture as of April 19: about 45 million litres of fuel are on land, with a further 22 million litres due to arrive before the end of April — a total of roughly 67 million litres for the month. Daily consumption remains near 2.5 million litres, he said, and stock levels are expected to fall to about 40 million litres by month‑end, or around 29 percent of storage capacity. Rabuka described that drawdown as a routine part of Fiji’s supply cycle to allow incoming shipments to be received and discharged safely.
Looking ahead, suppliers have committed to deliver some 118 million litres in May, which Rabuka said will lift national stocks to more than 59 percent of storage capacity and restore a stronger supply buffer. The prime minister classified the current situation as Phase 1 — a normal supply environment but one under pressure from elevated global prices.
Rabuka blamed the squeeze on global market forces, particularly the fallout from the war in the Middle East and disruptions linked to the Strait of Hormuz. “This is not a fuel shortage crisis. This is a global price crisis,” he said, noting that fuel purchases are invoiced in US dollars and domestic retail prices reflect international movements. He pointed out the independent price regulator, the Fijian Competition and Consumer Commission (FCCC), adjusted retail prices on April 1 to reflect higher purchasing costs and that another increase is anticipated in May.
The $56m package is intended to “protect livelihoods, maintain essential services, and support the most affected,” Rabuka said, though he did not detail the specific measures or sectoral breakdown in his statement. He emphasised the funds were redeployed from within the existing budget rather than sourced through additional borrowing.
The announcement is the latest development in a story that has been building since March, when officials warned that tensions in the Middle East and potential closures of the Strait of Hormuz could push up global oil prices and ripple through Fiji’s import‑dependent fuel market. At that time finance and energy officials sought to reassure the public that stocks were sufficient; the new Cabinet decision signals the government is moving from reassurance toward fiscal support to shield consumers and critical services from further price shocks.
Consumers and transport operators should expect continued price pressure into May, despite assurances that physical fuel supply will rebound. How the $56m will be deployed and which groups will receive direct relief will be closely watched as households and businesses contend with higher operating costs in the coming weeks.