As cabinet meets tomorrow to firm-up on the plan of action for the long term, if there is no resolution to the conflict in the Middle East in the near future resulting in a fuel supply shortage, questions continue to be asked on how well planned are we as a nation.
Speaking to fijivillage News this evening, Minister for Finance, Esrom Immanuel says cabinet will be meeting tomorrow to strategize on what needs to be done.
Immanuel says they have already set up a taskforce to monitor the situation for both the supply and and later the price.
When asked on fuel supply and reserves, Immanuel says they have upto 45 days of supply with at least 1 shipment on it's way.
He stresses we should not panic, and if the situation worsens then rationing will kick in.
A Government statement has been released this afternoon after some Total Energies fuel pumps, having signs up saying 'out of order' today sparking widespread concern if the effects of the fuel shortage has started.
The Government says fuel supply in the country is sufficient to meet the energy needs for the next few months and there is no need to indulge in ‘panic buying’ at the service station.
The Government says it is closely monitoring the developments emanating from the US-Israel conflict with Iran, and meeting with local suppliers who have already secured fuel supply.
As earlier highlighted, you also have to brace yourselves as the Middle East conflict is likely to push fuel prices up which is expected to result in higher prices of goods and services.
Immanuel says higher fuel prices will affect transportation cost, production costs and household expenses, placing upward pressure on inflation and cost of living.
Immanuel says at the same time, if global economic conditions weaken, Fiji could face additional challenges through softer tourism demand, reduced export demand and slower investment flows.
He says they are particularly mindful of the potential impact on the tourism sector and national carrier Fiji Airways, as rising fuel costs and weaker global demand could affect travel and tourism activity.
The Finance Minister says tourism remains a key driver of Fiji’s economy, and any slowdown would have broader implications for growth, employment and foreign exchange earnings.
Oil prices have increased significantly from around US$60 per barrel last year to approximately US$100 per barrel today.
Projections indicate that if the conflict continues and global oil supply disruptions intensify, prices could rise further.
Immanuel says as a small island economy and a price taker in global markets, such increases would pose significant challenges for Fijian businesses, consumers and the broader economy.
Immanuel says while these risks are real, there is no need for panic.
He says Fiji currently has adequate foreign exchange reserves, which provide an important buffer against external shocks, social protection frameworks are flexible enough to respond with mitigating measures, if required, and the Government will continue to assess the situation carefully and will explore options to support consumers and businesses should global conditions worsen.
