FIJI GLOBAL NEWS

Beyond the headline

Prime Minister Sitiveni Rabuka has announced a $56 million (US$39.95 million) government response to ease the impact of rising fuel prices, while saying Fiji’s physical fuel supply remains stable despite global market turmoil. The cabinet approved the redeployment of the funds within the existing 2025–2026 budget on April 21, Rabuka told media in Suva, stressing the money is not new borrowing but a reprioritisation of delayed projects to support households, businesses and essential services.

Rabuka provided detailed stock and supply figures, saying that as of April 19 Fiji had about 45 million litres of fuel on land and was expecting a further 22 million litres before the end of April. That brings April’s total available supply to roughly 67 million litres — “close to half” of national storage capacity, he said — with daily consumption running at around 2.5 million litres. He warned stocks would draw down to about 40 million litres, or roughly 29 percent of capacity, by the end of the month as part of the normal supply cycle to make way for incoming shipments.

Looking ahead, Rabuka said suppliers have committed to deliver about 118 million litres in May, which he expects will lift national stocks to more than 59 percent of storage capacity. “Once those shipments arrive, our national fuel stock is expected to rebound to over 59 percent of storage capacity. This means Fiji remains in a stable supply position. There is no shortage,” he said, describing the current situation as “Phase 1 — a normal supply situation, but under pressure from high global fuel prices.”

The prime minister attributed the squeeze on household and business budgets not to domestic shortages but to global price shocks linked to the war in the Middle East and disruptions to shipping through the Strait of Hormuz. He reiterated that fuel imports are purchased in US dollars and that increases on international markets are passed through to the domestic market. Rabuka noted fuel prices were increased on April 1 by the independent price regulator, the Fijian Competition and Consumer Commission (FCCC), which adjusted retail tariffs to reflect real purchasing costs; he warned another price rise was likely in May.

The government’s $56 million package is intended as immediate relief to protect livelihoods and maintain essential services, though Rabuka did not provide a full breakdown of how the funds will be allocated. He said the redeployment comes from delayed projects in the current budget and represents a short-term cushioning measure while authorities monitor global developments and supply flows.

The announcement is the latest development in a story first raised in March when officials and analysts warned that heightened tensions in the Middle East and potential closures of the Strait of Hormuz could push up global oil prices and unsettle Pacific fuel markets. At that time regulators and ministers urged calm and underscored Fiji’s reliance on imports through global trading hubs. Rabuka’s update supplies concrete stock figures and a government fiscal response, offering more certainty about short-term physical supplies even as price pressures persist and customers brace for further cost increases.


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