Prime Minister Sitiveni Rabuka has unveiled a $56 million (US$39.95 million) government package aimed at cushioning Fijian households, businesses and essential services from soaring global fuel prices, while stressing that the nation currently has sufficient supplies. The announcement on Thursday provided the most detailed public accounting yet of Fiji’s fuel stocks and supply plans as world markets remain under pressure from the war in the Middle East.
Rabuka said that as of April 19, Fiji had about 45 million litres of fuel on land, with a further 22 million litres due before the end of April — bringing total available supply for the month to roughly 67 million litres. That level, he said, is close to half of national storage capacity and equates to nearly a month’s usage at current consumption rates of about 2.5 million litres per day. Stocks are expected to draw down to about 40 million litres, or roughly 29 percent of capacity, by the end of April as part of the normal supply cycle to allow safe receipt of incoming shipments.
The government expects a substantial rebound in May, with fuel suppliers already committed to delivering about 118 million litres. Once those shipments are discharged, Rabuka said national stocks should recover to more than 59 percent of storage capacity. He framed the current situation as “Phase 1” — a normal supply environment under pressure from elevated global prices, rather than a domestic shortage.
Rabuka and officials were at pains to explain that the immediate problem is cost, not availability. He noted fuel is bought in US dollars and international price rises — driven, he said, by the conflict in the Middle East and disruptions such as temporary interruptions in transits through the Strait of Hormuz — have pushed up import costs. The Fijian Competition and Consumer Commission (FCCC), the independent price regulator, applied a fuel price increase on April 1 to reflect higher purchasing costs, and Rabuka warned consumers and businesses to expect another round of price adjustments in May.
To blunt the impact of higher pump prices, Cabinet on April 21 approved redeploying $56 million from within the existing 2025–2026 Budget. Rabuka emphasised the funds are not the result of new borrowing but a reprioritisation of monies from delayed projects to provide immediate relief. He said the government’s objectives are to protect livelihoods, maintain essential services and support the most affected families, transport operators and small businesses.
The update follows warnings earlier this year that tensions in the Middle East could spill over into global maritime chokepoints and push fuel costs higher. Government reassurance that shipments are scheduled and stocks will rebound in May offers short-term confidence, but the prime minister’s acknowledgement that price pressure will continue underscores the economic strain households and firms are likely to face in coming weeks.
Leave a comment