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Fiji Reallocates $56m to Ease Fuel Costs Amid Global Price Pressures

Fiji fuel station with multiple pumps and scenic mountain view, tropical palm trees, and clear blue.

Prime Minister Sitiveni Rabuka has unveiled a $56 million government package to ease the impact of rising fuel costs, while stressing that Fiji’s supply remains stable despite global market upheaval driven by the Middle East conflict. Rabuka said the funds — redeployed within the existing 2025–2026 Budget and not raised through new borrowing — are intended to cushion families, businesses and essential services as international prices push up local pump costs.

Speaking on April 24, Rabuka provided the most detailed public snapshot yet of national fuel stocks: as of April 19 Fiji had about 45 million litres of fuel on land, with a further 22 million litres expected to arrive before the end of the month, giving roughly 67 million litres available for April. With daily consumption running at about 2.5 million litres, that equates to roughly 27 days of fuel at current usage rates, he said. Rabuka cautioned the expected drawdown to about 40 million litres by month’s end — roughly 29 percent of storage capacity — was part of a routine supply cycle to allow for safe receipt and discharge of new shipments.

The government is banking on a much larger resupply in May. Rabuka said fuel suppliers have committed to delivering around 118 million litres next month, which would lift national stocks to over 59 percent of storage capacity and “rebound strongly” from April’s drawdown. He described Fiji’s situation as Phase 1 — a normal supply situation operating under pressure from high global prices — and reiterated that the country is not facing a domestic shortage.

Rabuka attributed the price pain hitting households and businesses to international market forces rather than local supply failure. “This is not a fuel shortage crisis. This is a global price crisis,” he said, pointing to sharp price rises driven by the war in the Middle East, shipping disruptions including closures in the Strait of Hormuz, and the fact that fuel is bought in US dollars. He noted the independent price regulator, the Fijian Competition and Consumer Commission (FCCC), implemented a fuel price increase effective April 1 and warned another increase is likely in May as global costs continue to be passed through to the domestic market.

Cabinet on April 21 approved the redeployment of $56 million (US$39.95 million) from delayed projects in the current budget to provide immediate support where needed most, Rabuka said. “This is not new borrowing. This is responsible Government, reprioritising funds from delayed projects to provide immediate support,” he said, adding the government’s focus is to protect livelihoods, maintain essential services and support those most affected by the price shock.

The update builds on earlier government and regulator briefings since March, when officials warned Fiji could feel the effects of rising crude oil prices if tensions around the Strait of Hormuz worsened. The new disclosure gives clearer figures on stock levels and supplier commitments, and confirms the government is using fiscal flexibility to blunt the impact on consumers even as price-setting remains the remit of the FCCC. With the large May shipments expected, officials say supply security should improve, but immediate relief for households will depend on how the redeployed funds are allocated and whether the FCCC’s next monthly review mirrors ongoing international cost pressures.


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