The Fiji Commerce and Employers Federation is warning of an increase in the cost of doing business and cost of goods and services, amidst the increase in oil prices overnight and the Government will need to urgently consider a financial support package for businesses should the Middle East crisis prolong.
FCEF CEO Edward Bernard says the price of a barrel of oil jumped up 29 percent and markets in major trading countries in Asia plummeted as a result.
He says they are now seeing tangible impacts on markets which will ultimately affect the Pacific and Fiji.
The CEO says media reports suggest that the Asian markets plummeted instantly and the Australian ASX 200 lost more than $94 billion.
He says Singapore, the country that all of Fiji’s fuel comes through, has already issued warnings to its own businesses and citizens.
Bernard stresses businesses must be vigilant in terms of investment decisions, employment considerations and ensuring fair prices for consumers.
He says the reason for the increase is that the flow of oil around the world is being affected after the closure of the Strait of Hormuz and attacks on refineries in the oil-rich region.
Bernard adds it is the first time in four years that the price has hit over $100 per barrel and some analysts argue we could see record oil prices above $150 a barrel if the shutdown of the strait reaches the end of March.
