The timing of Fiji’s latest fuel price adjustment has come under scrutiny, with Asia-Pacific Regulatory Centre (APRC) executive director Joel Abraham warning that a critical window for coordinated policy response may have been lost.
In a media statement, Mr Abraham said while global fuel price increases were unavoidable due to escalating geopolitical tensions, the way these shocks are transmitted into the domestic economy was equally important.
“The issue is not whether prices should increase, they must, given global conditions,” he said.
“The issue is that the timing of this increase has removed a critical window that Government had to respond in a coordinated and measured way.”
Mr Abraham acknowledged that the Fijian Government had acted proactively in addressing fuel volatility through high-level engagement, Cabinet coordination, and collaboration with industry and technical experts.
“This is what good governance looks like: anticipation, coordination, and intent,” he said.
However, he noted that Fiji’s fuel pricing system traditionally includes a lag of around two months between global price movements and local adjustments — a mechanism designed to cushion sudden shocks.
According to Mr Abraham, the latest price determination appears to have shortened that lag by incorporating more recent international data, effectively bringing forward the impact on households and businesses.
“That window was not idle time, it was an opportunity for alignment, consultation, and preparation,” he said. “Its removal constrains policy at precisely the moment it is most needed.”
He warned that accelerating the pass-through of global price increases could intensify cost-of-living pressures, heighten inflation risks, and reduce the Government’s ability to respond strategically.
“Speed is not always prudence,” Mr Abraham said.
“In moments like this, discipline in timing is as important as accuracy in pricing.”
Looking ahead, APRC is working with the Government to develop a Fuel Shock Response Framework aimed at improving how such shocks are managed.
“Regulation must balance accuracy with stability,” he said. “We cannot control global events, but we can control how those events are transmitted into our economy.”
