Fuel prices set to keep rising, Government warns

Fuel prices in Fiji are expected to continue increasing as tensions in the Middle East disrupt global supply, the Government has warned.

Minister for Information Lynda Tabuya said growing conflict involving Iran, Israel and the United States was already driving sharp increases in global fuel costs, with further rises likely if the situation worsens.

“Around the world, there is growing tension and conflict in the Middle East involving Iran, Israel and the United States. This situation is serious and it may continue to worsen.”

She said a key concern was the Strait of Hormuz, a major global shipping route through which much of the world’s fuel passes.

“One of the biggest concerns is a key global shipping route called the Strait of Hormuz. A large portion of the world's fuel passes through this area. When there is disruption there, it affects fuel prices and supply around the world.”

Ms Tabuya said Fiji remained heavily reliant on imported fuel, making it vulnerable to global shocks.

“You may wonder, what does this have to do with Fiji? The answer is simple. Fiji depends on fuel from overseas. We do not produce our own.”

“So when global fuel supply is affected, we feel it here, through higher prices and possible supply challenges. This is why government is acting now. Not because we are in a crisis today, but because we must be ready if the situation gets worse.”

She stressed there was no fuel shortage at present, but warned that rising costs were already being felt.

“Right now, Fiji still has fuel. Our supply is stable and fuel is available across the country.”

“Let me be very clear. This is not a fuel shortage right now. This is a fuel price issue.”

Fuel prices increased on April 1, driven by higher global costs and the need to secure future supply.

“On the 1st of April, fuel prices increased in Fiji. You may ask, why did prices go up when we still have fuel in the country? The answer is this. Fuel companies must keep buying fuel for the months ahead.”

“The price you pay today is not just for the fuel already here. It reflects the higher cost of replacing that fuel. Because of the conflict in the Middle East and disruption to major shipping routes, global fuel prices have risen sharply.”

She said global fuel prices had surged from about $95 a barrel to as high as $230 a barrel in a short period, pushing up the cost of future shipments to Fiji.

“For example, fuel has increased from about $95 a barrel to as high as $230 a barrel in a short time. This means the next shipments coming into Fiji will cost us more. And if the global situation does not improve, prices may go up again.”

“So, while fuel is available today, it is becoming more expensive. And that is why we must start using it more carefully now. There are also things we do not yet know.”

Read more here: https://fijisun.com.fj/news/nation/fuel-plan-activated-as-government-prepares-for-possible-shortages