Small retailers in Suva are already feeling the squeeze from rising operational costs and may be forced to pass those increases on to consumers if fuel prices keep climbing, the president of the Suva Retailers Association warned in comments to FBC News this week.
Jitesh Patel said the effect of higher costs is visible across the business sector but is particularly acute for small shops. “There’s a lot of cost in running a shop. It’s not just opening the doors and customers come in. So the impact down the line is huge, as we know, at the end of the day, people spend what they have in their pocket,” he said, stressing that reduced household spending directly cuts shop sales.
Patel told reporters consumers are already under financial pressure, which is altering spending habits and shrinking discretionary purchases in stores. “So, the customers, most of our customers or consumers, will always have some fixed costs they need to attempt to, and then whatever is left, they come and spend it in the shops. So, if their spending is shrunk, then the sales go down,” he said, underlining the tight margins many retailers now face.
The association leader warned that businesses may have no option but to review prices if key inputs keep rising. “All those things have to be considered before putting the prices up, and how it will affect the businesses,” Patel said, adding that absent targeted support mechanisms, ongoing fuel cost increases would leave shops little choice but to pass costs to consumers.
Patel’s remarks are the latest development in a series of cost shocks confronting Fijian businesses. Retailers had earlier criticised an electricity tariff hike announced by Energy Fiji Limited late last year, and the Fijian Competition and Consumer Commission flagged in March that global instability — particularly the lingering Middle East crisis — could push international oil prices higher. The commission noted Fiji imports all its fuel, which accounts for roughly 16 percent of the nation’s total imports, making local businesses vulnerable to rapid price transmission.
The Suva Retailers Association, which represents more than 170 businesses, has previously urged greater consultation over cost-of-service changes and is now urging authorities to consider relief or mitigation measures to prevent a wave of price increases that would further squeeze household budgets. Patel’s appeal for careful consideration before any price adjustments reflects concern that consecutive shocks—electricity tariff rises followed by fuel-driven cost pressures—could compound financial strain for both retailers and consumers.
Without intervention, the association cautioned, the knock-on effects could be broad: reduced sales for small retailers, higher prices for consumers already trimming spending, and potential long-term damage to local retail viability if margins are eroded. Patel’s warning places renewed focus on the need for policy responses that protect vulnerable businesses and households as global price volatility continues to feed through to Fiji’s economy.