FIJI GLOBAL NEWS

Beyond the headline

Prime Minister Sitiveni Rabuka has moved to calm fears of a fuel shortage while acknowledging that Fijians will feel continued pain at the pump, announcing a $56 million reprioritisation from the 2025–2026 budget to cushion households, businesses and essential services from rising global prices.

Speaking on April 24, Rabuka said Fiji’s physical fuel supply remains secure. As of April 19 the country held about 45 million litres on land, with a further 22 million litres due before the end of the month, giving about 67 million litres available for April — roughly half of national storage capacity. At a national consumption rate of about 2.5 million litres a day, that supply represents roughly 27 days of fuel at current usage rates. Rabuka said stocks will naturally draw down to about 40 million litres — around 29 percent of capacity — by the end of April as part of a routine cycle to make way for incoming shipments.

The immediate relief comes after Cabinet on April 21 approved the redeployment of $56 million (US$39.95 million) from within the existing budget. Rabuka emphasised this is not new borrowing but funds shifted from delayed projects to provide immediate support “where it is needed most,” with the government prioritising protecting livelihoods and maintaining essential services.

Supply is expected to strengthen in May: Rabuka said fuel suppliers have committed to delivering about 118 million litres next month, which will lift national stocks to more than 59 percent of storage capacity once those shipments arrive. He characterised Fiji’s situation as “Phase 1” — a normal supply position, but one under sustained pressure from elevated global prices.

The prime minister stressed the crux of the problem is cost, not availability. The latest rise in domestic pump prices, effective April 1, was set by the independent price regulator, the Fijian Competition and Consumer Commission (FCCC), to reflect higher international purchasing costs. Rabuka warned consumers to expect another increase in May, driven by ongoing volatility in global markets linked to disruptions in the Middle East and shipping routes.

This update follows months of government monitoring and earlier public advisories about potential price shocks as tensions around the Strait of Hormuz and other international developments pushed world oil prices upward. The new figures and the $56 million fiscal response provide the clearest picture yet of how the state is balancing short-term relief with efforts to avoid new debt, while relying on committed May shipments to rebuild buffer stocks.

For now, authorities say there is no shortage of fuel, but households and businesses should prepare for continued price pressure. The government’s next steps will be watched closely: how the redeployed funds are disbursed and whether global prices stabilise will determine the depth and duration of the cost squeeze on the Fijian economy.


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