Former deputy prime minister and finance minister Biman Prasad has urged political leaders and the public not to blame Fiji for a sharp rise in living costs, describing the current squeeze on prices as an externally driven crisis tied to global forces. Speaking as tensions between the United States and Iran continue to roil international markets, Prof Prasad warned against using the situation for partisan advantage and urged restraint while governments weigh fiscal responses.
“This is a crisis that is not created by Fiji or Government or some business entities or individuals. It is a crisis that is externally driven,” Prof Prasad said, likening the shock to previous global disruptions such as the 1970s oil crisis, the Global Financial Crisis and the COVID-19 pandemic. He cautioned that even if hostilities end quickly, supply‑chain and market disruptions would keep pressure on prices for some time. “So even if the war ends tomorrow … there are a number of things that will continue to happen,” he added.
Prasad’s comments come after scathing criticism from Opposition MP Jone Usamate, who characterised the recent fuel surge as a betrayal of public trust. Usamate pointed to assurances from Prime Minister Sitiveni Rabuka that there would be “no fuel price increase” and from Finance Minister Esrom Immanuel that prices would not rise before May 2026. “Yet, just two weeks later, Fijians are reeling from the largest monthly increase in our history, with petrol jumping by 49 cents and diesel skyrocketing by 75 cents,” Usamate said.
Rather than blame, Prof Prasad urged policymakers to focus on practical fiscal adjustments to ride out what he called a prolonged global crisis. He said the government may need to implement significant spending cuts if Middle East tensions persist, and highlighted operational areas where savings could be found — notably government travel, conferences, workshops and training programs. “The honourable Prime Minister has already, for example, said that Government travel needs to be drastically reduced,” Prasad noted as an example of measures that could be accelerated.
He also suggested delaying some long‑term capital and infrastructure projects that do not directly affect households’ day‑to‑day needs, freeing funds to support vulnerable groups and essential services. “These are economic infrastructure projects that are not necessarily infringing on the immediate and daily lives of households. That could be delayed,” he said, framing such steps as short‑term fiscal rationalisation rather than permanent retrenchment.
On the international front, Prasad urged stronger budgetary and economic ties with regional partners. He proposed that ongoing discussions around security arrangements with Australia could be broadened to include economic support and budget assistance, and called for deeper integration with New Zealand as well. “Australia is a much bigger economy, it’s a very important partner for Fiji, Australia can also provide additional support in terms of budget support,” he said, adding that closer cooperation could help Fiji redirect expenditures to priority areas during the anticipated medium‑term impacts of the global fuel crisis.
As the debate intensifies between government assurances and opposition criticism, Prasad’s intervention frames the choice facing policymakers: manage short‑term pain by reprioritising spending and seeking external support, while avoiding political point‑scoring that could undermine public confidence during a period of global economic instability.
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