Major fuel price reductions expected from July: Minister

Fijians can expect major reductions in fuel prices from July after easing global oil prices prompted the Government to signal lower domestic fuel costs, offering relief to households and businesses hit by the recent fuel crisis.

Finance Minister Esrom Immanuel said the recent peace deal between the United States and Iran and the reopening of the Strait of Hormuz had helped push global oil prices below US$80 a barrel.

He said the lower international fuel prices would be reflected in Fiji's domestic market.

"Not everything is doom and gloom. The progress on the peace deal between United States and Iran is a positive development. With the opening of the Strait of Hormuz, although with some challenges, and subsequent reduction of fuel prices to below US$80 per barrel is a welcome relief.

"FCCC will soon announce major reductions in domestic fuel prices for July and following months which should ease our inflationary pressures and cost of business."

The anticipated reduction comes after months of high fuel prices that placed pressure on businesses, public transport operators and households, while also contributing to higher inflation and slower economic growth.

Mr Immanuel said Fiji's economy had come under additional strain because of the global fuel crisis, which had reduced Government revenue and forced difficult fiscal decisions in the 2026-2027 National Budget.

He said the expected fall in fuel prices would help ease inflationary pressures and reduce the cost of doing business, providing some relief as the economy continues to recover from recent global shocks.