It is inaccurate to suggest that all fuel being sold was purchased at older prices - PM

It is inaccurate to suggest that all fuel currently being sold was purchased at older, lower prices.

This was shared by the Prime Minister Sitiveni Rabuka.

Rabuka says the Government notes recent comments by the Fiji Trades Union Congress (FTUC) and wishes to clarify several points.

He says fuel supplies for April have already been procured at significantly higher global rates, and shipments for May and June have also been secured at elevated prices amid ongoing global uncertainty, and fuel supply cannot be guaranteed until shipments are dispatched and received.

Rabuka adds that fuel companies have already been absorbing losses exceeding $1 per litre for April supplies.

He says as previously stated, the global price of oil has risen sharply from $95 to $230 per barrel, while the cost of a single fuel shipment has increased from $12 million to $30 million.

The Prime Minister says the recent price adjustment is therefore necessary to ensure that suppliers can continue securing fuel for the coming months without incurring further losses that could jeopardize national supply.

Rabuka says fuel pricing is determined using replacement cost, which reflects the cost of obtaining the next shipment.

He says this is standard international practice and is essential to maintaining a stable fuel supply.

He says it is also important to note that fuel prices are set by the independent FCCC, not by the Government.

The Prime Minister says the FCCC has outlined the basis for the recent increases following consultations with fuel companies and the Fuel Advisory Committee.

The government says it accepts this assessment and recognizes that current conditions are highly abnormal.

At the same time, Government acknowledges the financial pressure on families and confirms that the minimum wage was increased within two years of taking office.

Rabuka says the Employment Relations Bill is strengthening worker protections, and financial mitigation measures are currently being developed to help cushion the impact of the global fuel crisis.

The government also reiterates Phase 1 fuel-saving advisories.

The Prime Minister says these include reducing unnecessary travel, carpooling or using public transport where possible, working from home when feasible, reducing electricity usage by switching off lights when not in use, and considering the use of solar lighting.

He says while the government continues to advance worker protections, it is also important to recognize that resistance to wage increases has come from some employers.

He adds advocacy for improved wages and working conditions must also be directed toward addressing this resistance.