Fiji’s economy could face sharp and immediate pressure if global conflict disrupts oil supplies and sends fuel prices soaring, with higher transport costs, food prices and inflation likely to hit households and businesses hard.
Leader of Opposition Inia Seruiratu said Fiji’s heavy reliance on imported fuel and goods has left the country highly exposed to geopolitical shocks beyond the region as US oil prices rose on Sunday following the US attack on Venezuela.
“Higher fuel prices would flow directly into transport costs, food prices and overall inflation,” he said.
“Disruptions to global supply chains would further drive-up costs, placing additional strain on household budgets and businesses across the economy.”
Mr Seruiratu said Fiji’s vulnerability was compounded by its dependence on imports and remittances.
“Our reliance on global markets means shocks overseas can quickly translate into higher prices at home and even affect remittance flows many families depend on.
“On preparedness, the economist said Government responses to past fuel spikes had been largely reactive.
“Fiji needs stronger forward planning to manage inflationary pressures, rather than responding only after costs are passed on to consumers.”
He said immediate priority should be given to protecting key sectors such as tourism, while cushioning households, small businesses and agriculture from sustained price rises.
Energy security, he added, should be treated as a national security issue.
“Greater investment in renewable energy and diversification of supply are essential to reduce exposure to global shocks.”
Parliament the Leader of Opposition said had a critical role in scrutinising Government preparedness and long-term planning “to ensure decisions are made in the best interests of all Fijians in times of heightened global risk.”
