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Fiji Reallocates FJ$56 Million to Cushion Households as May Fuel Price Hikes Loom

Gas station in Fiji surrounded by tropical greenery and mountains.

Prime Minister Sitiveni Rabuka announced on 24 April that Fiji would redeploy FJ$56 million (US$39.95 million) from the current 2025–2026 budget to cushion households, businesses and essential services from a global fuel price shock, while warning that consumers should brace for further price pain in May. Cabinet approved the move on 21 April, Rabuka said, stressing the package is not new borrowing but a reprioritisation of delayed projects to provide immediate relief.

Rabuka also set out fresh detail on Fiji’s physical fuel position. As of 19 April the country had about 45 million litres of fuel on land and an additional 22 million litres due to arrive before the end of April, bringing available April supply to roughly 67 million litres — “close to half” of national storage capacity. With daily consumption running at an estimated 2.5 million litres, he said stock levels are expected to fall to about 40 million litres, or some 29 percent of storage capacity, by the end of the month as part of the normal supply cycle to make room for incoming shipments.

The prime minister sought to reassure the public that the island nation is not facing a physical shortage. Suppliers have committed to deliver about 118 million litres in May, Rabuka said, a delivery he expects will restore national stocks to above 59 percent of storage capacity. “We are currently operating in Phase 1 — a normal supply situation, but under pressure from high global fuel prices,” he told reporters, adding that the issue confronting Fiji is cost rather than availability.

That cost pressure has already been felt at the pump. The Fijian Competition and Consumer Commission (FCCC), the independent price regulator, implemented a fuel price increase on 1 April to reflect higher international purchase costs. Rabuka attributed the recent spike in global prices to the war in the Middle East and disruptions around the Strait of Hormuz, noting that Fiji purchases fuel in US dollars and therefore domestic prices move in line with global markets. He warned another tariff adjustment is likely in May.

The government’s FJ$56 million package is intended to blunt that impact. Rabuka said the funds will be targeted at protecting livelihoods, maintaining essential services and supporting those most affected by rising transport and living costs. He did not provide a detailed breakdown of how the money would be allocated, but emphasised the measure was a temporary reprioritisation within the existing budget rather than an increase in borrowing.

This announcement is the latest development in a story that has been unfolding since early March, when officials and analysts flagged the risk that tension in the Middle East could push global oil prices higher and disrupt shipments through the Strait of Hormuz. At the time, regulators and ministers urged calm while monitoring supplies. Rabuka’s update provides the first comprehensive public snapshot of Fiji’s stocks and a government-funded mitigation plan, but it also signals that consumers should prepare for continuing price volatility into May even if physical supplies remain secure.


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