Energy Fiji Ltd (EFL) says global fuel markets remain highly volatile despite a recent decline in oil prices, with ongoing geopolitical tensions continuing to pose risks to Fiji’s electricity sector.
Appearing before the Parliamentary Standing Committee on Economic Affairs this week, EFL chief financial officer Semisi Tawake said they had been closely monitoring developments in international fuel markets following the Middle East crisis.
“Global fuel markets experienced significant volatility during 2026,” Mr Tawake said.
He explained that fuel prices surged sharply following the outbreak of hostilities involving Iran and the United States.
“On the February 28, the MOPS price, Singapore Mean of Platts price was at $US68 ($F152) per barrel at that point in time.
“During the intense bombing scenario where US had that situation with Iran, it shot right up to $US138 ($F303) per barrel.”
Mr Tawake said prices later eased following diplomatic negotiations and the signing of a memorandum of understanding between Iran, the United States and its allies.
“It dropped from $93 to $83, and then two days later, it reduces back to $10 again, about $73, which is hovering at that mark at the moment.”
However, he warned that uncertainty remained.
“We heard the current situation yesterday (Monday), Iran is saying a closure of Strait of Hormuz, so the situation is still volatile as we speak right now.”
Mr Tawake said EFL had responded by implementing a comprehensive contingency framework, including optimising hydro resources, increasing independent power producer generation and prioritising cheaper heavy fuel oil over diesel.
“Our mix is 90 per cent Heavy Fuel Oil (HFO) as opposed to 10 per cent of IDO.”
He said temporary fuel duty relief measures introduced by Government had helped cushion consumers from global fuel price shocks.
