CONSUMERS and businesses have again been advised that the global supply chain disruptions linked to escalating geopolitical tensions in the Middle East are expected to drive significant cost increases across everyday goods in Fiji.
The Fijian Competition and Consumer Commission (FCCC) warned that Fiji faced an inflationary shock across multiple sectors following Qatar Energy’s halt of downstream production on March 3 early this year – including exports of urea, polymers, methanol, and aluminium, together with the disruption of shipping through the Strait of Hormuz.
“As a price-taking economy that relies heavily on imports for approximately 80 per cent of consumer goods, Fiji is particularly vulnerable to these global developments,” the FCCC stated in its market advisory issued on Saturday.
The FCCC warned of key risks to the country that included a second wave of food inflation, energy transition costs, logistical premiums, escalating insurance and force majeure costs, and spot market volatility and floating premiums.
“Higher fertilizer costs are expected to increase agricultural production expenses, which may contribute to a second wave of food inflation during mid-2026. Rising transport and fuel costs are also expected to add further pressure to food prices,” the FCCC stated.
It stated rising aluminium prices – that remains a critical component for renewable energy infrastructure, including planned solar photovoltaic projects by Energy Fiji Ltd – may increase the cost of Fiji’s renewable energy transaction initiatives.
Freight rates for chemical and LNG carriers had increased sharply, and so have insurance premiums on vessels transiting conflict-adjacent routes too.
It added with long-term supply contracts disrupted, importers were increasingly exposed to spot market pricing for fuel and key commodities.
The Commission said together with the Government, had implemented several measures to cushion consumers from price pressures.
It highlighted the activation of the National Fuel Emergency Action Plan; the joint taskforce on price surveillance in collaboration with the Fiji Revenue and Customers Service and the Consumer Council of Fiji; strict enforcement actions again unscrupulous traders; monitoring of flow-on effects of fuel cost increases on electricity generation; tracking and monitoring of fuel imports, consumption and supply; and securing continuity of fuel supply.
The Commission has advised consumers and households to plan ahead and expect gradual price changes over the coming weeks; avoid unnecessary stockpiling; use fuel and electricity prudently; report unjustified price hikes; and monitor the Commission’s master price list for regulated goods.
It has advised businesses and importers to extend procurement lead times by three to four weeks; maintain freight invoices and supplier records to justify any price changes; secure fertilizer and chemical inputs now; and warned that traders found exploiting freight costs would face strict enforcement action.
