Prime Minister Sitiveni Rabuka has moved to blunt the impact of a global fuel price shock on households and businesses by reallocating FJ$56 million (US$39.95 million) from the existing 2025–2026 budget, while reassuring Fijians that the nation is not facing a supply shortage. The Cabinet approved the redeployment on April 21, Rabuka said, stressing the funds are not new borrowing but a reprioritisation of delayed projects to provide immediate relief.
Rabuka outlined the country’s fuel position on April 24, saying that as of April 19 Fiji held about 45 million litres of fuel on land, with a further 22 million litres expected to arrive before the end of April. That brings April’s total available supply to roughly 67 million litres — close to half of national storage capacity. Daily consumption has remained steady at about 2.5 million litres, he said, and stocks are projected to draw down to roughly 40 million litres, or about 29 percent of storage capacity, by the end of the month as part of the normal supply cycle to allow for safe discharge of incoming shipments.
Looking ahead, Rabuka said fuel suppliers have committed to deliver some 118 million litres in May, a figure that would lift national stocks back above 59 percent of storage capacity and restore a stronger supply buffer. “There is no shortage. We are currently operating in Phase 1 — a normal supply situation, but under pressure from high global fuel prices,” he told reporters, framing the challenge as a global price crisis rather than a domestic supply failure.
The prime minister attributed the price pressure to international events, citing the war in the Middle East and disruptions to shipments through the Strait of Hormuz. He pointed out that Fiji imports fuel priced in US dollars, so upward movements in global markets translate directly into higher local costs. That transmission prompted the independent price regulator, the Fijian Competition and Consumer Commission (FCCC), to increase retail fuel prices on April 1, and Rabuka warned consumers to expect another adjustment in May based on real purchasing costs.
The government’s FJ$56 million package is intended to “protect livelihoods, maintain essential services, and support the most affected families, businesses and transport operators,” Rabuka said, without providing a detailed breakdown in his statement. He emphasised the Cabinet decision avoided new borrowing by redeploying resources within the existing budget, signalling a short-term fiscal response to immediate cost pressures.
This announcement is the latest chapter in a story that has been unfolding since tensions in the Middle East began to unsettle global energy markets earlier this year. Government officials had already been monitoring the situation and providing reassurances in March that Fiji’s imports and reserves were being managed, but Rabuka’s update provides the first detailed public tally of current stocks and a concrete fiscal measure aimed at cushioning the economic impact on Fijians.
Analysts and consumers will now be watching the promised May deliveries and the FCCC’s next price determination closely. While the committed shipments would restore a healthier storage level, Rabuka’s warning that global price drivers — not domestic supply constraints — remain the dominant threat suggests that retail prices could continue to track international movements despite the government’s mitigation measures.
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