We need to act decisively, communicate clearly, understand that the significant increase in fuel prices will have an impact across the board, there could be more fuel prices and we need to have clear action plans in place.
That is the message of the National Federation Party Leader, economist and former Minister for Finance, Professor Biman Prasad, as he also says the Opposition should not play politics with this national crisis.
Professor Prasad says this is a crisis that is not created by the Fijian government or some business entities or individuals.
He says it is a crisis that is externally driven.
Professor Prasad says even if the war ends tomorrow, there are a number of things that will happen to get the production, and the supply back on track, it is going to take a long time - it will take six months, even a year, depending on what's happening.
He says the demand for energy and fuel is already high and is going to become higher as the crisis unfolds.
The NFP Leader says we also need a very clear communication from the government, and from everyone that wants to talk about this crisis.
Professor Prasad says we need to ensure our energy supply is protected, and 50 percent of our energy is from diesel and 50 percent is from hydro.
The economist says we have to also make sure that the fuel companies have the right price incentive, because it's not so much the price itself, it's a supply issue.
He says we need clear contingency plans.
Professor Prasad says we understand the economic impact of fuel price increase is quite extensive, as it affects everything.
He says even if the government reduces VAT to zero on fuel, and remove all the taxes, including the fuel tax of 20 cents per litre on diesel and 46 cents per litre on unleaded, the fuel price will still rise, because externally, the prices will go up.
His advice is not to remove the fuel tax now as the government will lose about $150 million which can be used to provide urgent relief to the most vulnerable in the country.
He adds the government must ensure that public transport is also not affected and look at subsidies for the public transport sector.
Professor Prasad says social welfare relief needs to be assessed, government expenditure priorities need to be assessed based on the situation now, and a clear focus is needed for business continuity and support.
He says all steps should also be taken to ensure there are no job losses.
