Govt announces $56m plan to blunt fuel price surge

The Government has redeployed $56 million within the 2025–2026 Budget to cushion the impact of the global fuel crisis, with support focused on transport, electricity, welfare recipients and cane farmers.

Prime Minister Sitiveni Rabuka said Cabinet approved the move on April 21, stressing it did not involve new borrowing.

“On the 21st of April 2026, Cabinet approved the redeployment of 56 million dollars within the existing 2025–2026 Budget to respond to the impact of the global fuel crisis. This is not new borrowing. This is responsible Government, reprioritising funds from delayed projects to provide immediate support where it is needed most.”

He said the aim was to “protect livelihoods, maintain essential services, and support the most vulnerable.”

Public transport support

Government has set aside $4 million to support bus operators and prevent service disruptions. From April 1 to July 31, it will absorb an additional 10 per cent fare increase on top of existing fares, alongside the current 10 per cent subsidy.

A fuel rebate of 20 cents per litre will also be provided to bus companies.

“This support ensures that our buses continue to operate and that ordinary Fijians can continue to travel affordably to work, school, and essential services.”

Power supply stabilised

To maintain electricity supply, Government will provide fuel rebates to Energy Fiji Limited (EFL) for four months — 20 cents per litre on diesel and 12 cents per litre on heavy fuel oil.

“This support will stabilise electricity generation and ensure that homes, businesses, and essential services continue to have reliable power during this period.”

Welfare boost

A temporary 50 per cent top-up will be given to all social welfare recipients for three months, from May 1 to July 31, at a cost of about $24 million.

“This measure… is designed to give immediate relief to vulnerable households and ensure that no one is left behind during this difficult period.”

Support for farmers

Government has allocated $28 million for a sugar cane price top-up for the 2025 crop season to support farmer incomes and production.

Funded from savings

All measures will be funded from savings within the current budget due to delays in some projects. Ministries and agencies have also been directed to cut costs.

“Government is tightening its own belt first.”

Mr Rabuka urged Fijians to conserve fuel and electricity and consider carpooling and public transport.

“Fuel is available. Government is acting. And Fiji is prepared.”