ENERGY Fiji Limited (EFL) is facing an estimated $44million in additional costs from international fuel price volatility and reduced hydropower generation, prompting a temporary electricity fuel surcharge.
Minister for Public Works, Meteorological Services and Transport Ro Filipe Tuisawau told Parliament yesterday the combined impact of the two pressures was expected to reach $44million by December 2026.
He said geopolitical instability in the Middle East and concerns over international oil-supply routes had driven volatility in global fuel prices.
At the same time, reduced rainfall and water inflows had forced EFL to rely more heavily on thermal generation, increasing diesel and heavy fuel oil consumption.
“The temporary fuel surcharge is intended to recover most of these extraordinary costs,” Ro Filipe said.
“It is not designed to increase EFL’s underlying profitability.”
Mr Tuisawau said Government had introduced fuel import tax concessions for electricity generation under the 2026-2027 National Budget to ease the burden on consumers.
He said EFL had warned that international fuel and hydrological risks could continue into the first quarter of 2027.
“Government is therefore considering the appropriate continuation of temporary support measures, including the fiscal treatment of fuel and the surcharge recovery mechanism.
“Our objective is to ensure that remaining extraordinary costs are managed in a measured manner rather than creating a sudden financial shock for consumers.”
