Fuel import bill needs to go down

In the next three years, we must reduce our fuel imports by $300 million and we need to put in strategies for that to happen immediately.

These are the words of Reserve Bank of Fiji Governor Sada Reddy while addressing the delegates at the Fiji Institute of Accountants conference at the Fijian Hotel in Sigatoka today.

Reddy highlighted that fuel imports are around one third of our total import bill, which is very high for a country of Fiji's size and total imports grew by at an average rate of 6 percent over the past 15 years.

The RBF Governor also highlighted that for Fiji to lift its Gross Domestic Product growth from the current low levels to around 5 percent, Fiji needs nearly $500 t0 $600 million in additional foreign exchange receipts every year and if not achieved, the constraints with the balance of payments will not be solved and the RBF's policies cannot be relaxed to allow for easier business conditions.

Reddy said we are faced with this because our exports cannot keep pace with our imports.

However, he said total exports are expected to grow by 9.5 percent this year and in the next two years. He revealed that there has been increase in exports earnings from molasses, sweet biscuits, gold and fish which is very encouraging.

Reddy also took the opportunity to once again call on the hotel industry to please do everything in their power to reduce the consumption of imports.

He said this will go a long way in assisting Fiji's balance of payments.

 
The Accountants forum continues at the Fijian Hotel this afternoon.