In an effort to ease the burden of the increasing fuel prices, the Government has announced a redeployment of $56 million from the existing budget to fund support for bus operators, a 50 percent social welfare top-up, and sugar cane price top-up for farmers.
In a statement on the state of our fuel supply and what the Government is doing to protect the people and the economy, Prime Minister Sitiveni Rabuka says the Cabinet approved the redeployment of $56 million within the existing 2025–2026 Budget on Tuesday to respond to the impact of the global fuel crisis.
He stresses that this is not new borrowing but is responsible Government, reprioritising funds from delayed projects to provide immediate support where it is needed most.
Rabuka says their focus is to protect livelihoods, maintain essential services, and support the most vulnerable where first, they are taking action to keep Fiji moving.
He says the Government has allocated $4 million to support bus operators and ensure there is no disruption to public transport services.
He says for the next four months, from the 1st of April to the 31st of July, the government will fully absorb an additional 10 percent fare increase on top of existing bus fares.
Rabuka says this is in addition to the current 10 percent subsidy already provided to passengers.
The Prime Minister says on top of that, the Government will provide a full fuel rebate of 20 cents per litre to all bus companies during this period.
He says this support ensures that our buses continue to operate and that ordinary Fijians can continue to travel affordably to work, school, and essential services.
Rabuka says at the same time, they are acting to keep the lights on.
He also says the Energy Fiji Limited relies on diesel and heavy fuel oil for approximately half of the country’s electricity generation.
Rabuka confirms that to ensure there is no disruption to power supply, the Government will provide fuel rebates to EFL for the next four months, which includes 20 cents per litre on diesel and 12 cents per litre on heavy fuel oil.
He says this support will stabilise electricity generation and ensure that homes, businesses, and essential services continue to have reliable power during this period.
Rabuka says they are also focused on protecting those who need help the most.
He says that with rising fuel prices increasing the cost of living, the Government will provide a temporary 50 percent top-up to all social welfare recipients for three months, from the 1st of May to the 31st of July.
The Prime Minister says this measure, costing approximately $24 million, is designed to give immediate relief to vulnerable households and ensure that no one is left behind during this difficult period.
In addition, Rabuka says they are supporting our rural economy and our farmers.
He also confirms a total of $28 million has been allocated for a sugar cane price top-up for the 2025 crop season.
Rabuka says this will help stabilise incomes for our cane farmers and ensure continued production in one of our key sectors.
The Prime Minister explains that all of these measures, totalling $56 million, are being funded through savings within the existing budget.
He says due to delays in some ongoing projects, funds have not been fully utilised, and Government has taken the responsible step to redeploy those funds to address this immediate national priority.
Rabuka says at the same time, all Ministries, Departments, and Agencies have been directed to implement strict cost-cutting measures and the Government is tightening its own belt first.
The Prime Minister also confirms that as of the 19th of April, Fiji’s fuel supply remains stable, where we currently have about 45 million litres of fuel in stock on land, and an additional 22 million litres is expected to arrive before the end of this month.
He says this brings the total available supply for April to about 67 million litres, which is close to half of our total national storage capacity.
Rabuka says daily consumption remains steady at around two and half million litres.
Based on normal usage, fuel levels are expected to draw down to approximately 40 million litres, or about 29 percent of storage capacity, by the end of April.
Rabuka has assured that that this is not a cause for concern and is part of the normal supply cycle.
He says storage levels must come down at the end of each cycle to allow the next shipment to be received and discharged safely.
He says looking ahead, fuel suppliers have already committed to delivering about 118 million litres in May.
Rabuka says once those shipments arrive, our national fuel stock is expected to rebound to over 59 percent of storage capacity.
He says this means Fiji remains in a stable supply position and there is no shortage.
Rabuka stresses we are currently operating in Phase 1, a normal supply situation, but under pressure from high global fuel prices, and that is the real challenge we face.
He says this is not a fuel shortage crisis but a global price crisis.
The Prime Minister says fuel prices have risen sharply due to the war in the Middle East, supply disruptions due to the closure of the Strait of Hormuz and rising costs in global markets.
He says fuel is purchased in US dollars, and when global prices increase, those increases are passed through to our domestic market and this is why prices went up on the 1st of April.
Rabuka emphasizes that decision was not made by Government but by the independent price regulator, FCCC to reflect real purchasing costs and unfortunately, we anticipate another price rise in May.
He says while supply remains stable, we must all play our part and is urging everyone to use fuel wisely, carpool where possible, use public transport, reduce unnecessary travel, save electricity in your homes and invest in solar lights.
Rabuka says these small actions, taken together, make a big difference in protecting our national fuel supply.
The Prime Minister has assured that fuel is available, the Government is acting and Fiji is prepared.
He says they continue to monitor the situation daily, and stand ready to take further action if global conditions change.
He stresses that in times like this, our strength lies in our unity, our discipline, and our faith.
Rabuka is asking everyone to remain calm, to look after your families, to support one another, keep our nation in our prayers, and pray for peace and stability around the world.
