FIJI GLOBAL NEWS

Beyond the headline

The Fijian Government has unveiled a $4 million support package to keep buses running and shore up electricity generation as fuel costs bite, Prime Minister Sitiveni Rabuka announced on Tuesday. The four-month package runs from April 1 to July 31 and combines direct fare support for public transport with fuel rebates for operators and Energy Fiji Limited (EFL).

Under the measures, the state will "fully absorb an additional 10 per cent fare increase" on top of existing bus fares for the duration of the support period. That payment comes in addition to a current 10 per cent subsidy already provided to passengers, meaning commuters will continue to benefit from government assistance while bus companies receive compensation for the higher operating costs. Rabuka said the package is aimed at ensuring there is no disruption to public transport services and that "ordinary Fijians can continue to travel affordably to work, school and essential services."

Bus operators will also get a direct fuel rebate of 20 cents per litre across the same April–July window. The government described that rebate as a full relief on fuel surcharges for bus companies during the four months, intended to reduce the pressure on operators facing rising diesel prices and to prevent service suspensions or timetable cutbacks.

The support extends to the power sector. EFL, which the government says relies on diesel and heavy fuel oil (HFO) for about half of the country’s electricity generation, will receive a diesel rebate of 20 cents per litre and a 12 cents per litre rebate on HFO for the same period. Rabuka framed the assistance as necessary to "stabilise electricity generation and ensure homes, businesses and essential services continue to have reliable power."

The package is presented as part of a broader government response to recent fuel-price increases that have strained household budgets and elevated operating costs for transport and energy providers. The administration has previously signalled an interest in protecting vulnerable groups from transport cost rises — the 2024/25 National Budget converted some bus fare top-ups into cash assistance to expand social welfare reach, a move welcomed by social protection authorities — and Tuesday’s measures follow that line of policy by shifting a portion of the cost burden onto the state.

Details on how the $4 million will be disbursed to bus firms, and the fiscal impact of the EFL rebates, were not provided in full at the announcement. The government did not specify whether the rebates will be clawed back if fuel prices fall or how they will be administered at the point of sale. Rabuka said the interventions are temporary and targeted to the April–July period to "buy time" while broader economic conditions are assessed.

Transport operators and EFL are expected to receive formal communications from the relevant ministries and statutory bodies in the coming days outlining procedures for claiming the rebates and accounting for the absorbed fare increases.


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