A COMPLETE removal of fuel duty across the board would result in a revenue loss of more than $150million.
Providing an update on the global fuel crisis in Parliament yesterday, Finance Minister Esrom Immanuel said fuel-related taxes remained a significant source of government revenue.
“Government has already implemented targeted support measures for the bus industry and Energy Fiji Ltd to cushion the impact of rising global fuel prices and maintain essential services,” said Mr Immanuel.
“At the same time, it is important to recognise that fuel-related taxes remain a significant source of government revenue that finances critical public services, including healthcare, education, social welfare assistance, infrastructure, and national security.
“A complete removal of fuel duty across the board would result in a revenue loss of more than $150m and would materially weaken Government’s capacity to continue delivering these essential services and supporting vulnerable communities.”
Mr Immanuel explained Government had instead adopted a more balanced, targeted and fiscally responsible approach by directing assistance towards the sectors and groups most affected by rising fuel costs.
He said in addition, the Fijian Competition and Consumer Commission had applied the lowest cost operator principle in setting fuel prices on a monthly basis.
“Fuel and LPG prices are determined using a transparent pricing methodology that reflects changes in international refined fuel prices, exchange rates, shipping costs, taxes, and regulated wholesale and retail margins.
“This methodology is not arbitrary, it is an approved regulatory framework agreed upon by both the FCCC and suppliers, and it has been consistently applied over several years.
“Its continuity ensures predictability, accountability, and public confidence in how fuel prices are set.”
