The rise in fuel prices as a result of the war in the Middle East could trigger a slight inflation in Fiji.
Minister of Finance Esrom Immanuel has acknowledged that rising global fuel prices linked to tensions in the Middle East could have a ripple effect on the local economy, including a possible increase in the cost of goods and services.
Mr Immanuel said fuel prices had recently increased in global markets as the conflict escalated, although there had been some easing overnight.
“The price, as we’ve seen in the world market, it has increased,” he said.
“But last night, this reduced again. It is based on what’s happening there.
Despite the volatility in international markets, the minister said the impact on Fiji would not be immediate because of the country’s fuel supply and pricing structure.
“For us, the pricing lags by around a month.
“And we have stocks for around 40 to 60 days.
“So that can hold for us for the next three months on the pricing.”
However, the minister acknowledged that higher fuel prices could eventually affect the broader economy.
“Fuel prices increase, so does the price of goods, because fuel is one of the components in the calculation of the cost of living or inflation.”
Meanwhile, the Ministry of Foreign Affairs has urged Fijians to avoid travelling to countries in the Middle East as tensions in the region escalates.
The ministry is also calling on Fijians who are currently in the region or residing there to contact their nearest embassy. lead
