DIALOGUE Fiji has called on Government to urgently reduce fuel duties, arguing that it is collecting significantly more tax revenue while ordinary Fijians struggle with record fuel prices.
In a statement yesterday, Dialogue Fiji executive director Nilesh Lal said Government was benefiting from higher VAT collections generated by rising fuel costs and should share some of the burden faced by households and businesses.
“This is not a situation where Government is simply standing on the sidelines while citizens suffer the effects of international events,” Mr Lal said.
“The reality is that Government is also benefiting fiscally from these higher fuel prices through increased VAT collections.”
The call comes after the latest fuel price review pushed motor spirit to $3.93 per litre and automotive diesel to $4.58 per litre, largely driven by global oil market disruptions linked to the Strait of Hormuz crisis.
Dialogue Fiji’s analysis showed Government tax revenue from petrol had increased from 74 cents to 90 cents per litre, while revenue from diesel had risen from 44 cents to 71 cents per litre since February.
Based on estimated national fuel consumption, the organisation claims Government is now collecting about $3.44million more in fuel-related tax revenue, a 47 per cent increase compared with pre-crisis levels.
Mr Lal said the impact extended beyond motorists because diesel costs affected the transportation of food, goods and building materials across the country.
He urged the Minister for Finance and Cabinet to consider temporary reductions in fuel duties to ease cost-of-living pressures.
