Cost for transport to Fiji’s outer islands is expected to rise, while services may become less frequent as operators respond to higher fuel prices.
Member of Parliament and former executive in Fiji’s cruise tourism industry Semi Koroilavesau said fuel costs remain a major concern for transport operators servicing maritime and rural communities.
Mr Koroilavesau said although he was no longer directly involved in the business sector, the rising cost of fuel would likely affect transportation services.
“I think you’ll just be basically looking at the cost of fuel and what is going to happen in the future in regards to businesses, especially transportation,” he said.
Mr Koroilavesau said maritime communities could experience increases in cartage and boat fares.
He said businesses in sectors that rely heavily on fuel consumption, such as tourism and transportation, would need to consider strategies to manage the impact of price increases.
One option, he said, was fuel hedging, where businesses purchase fuel in advance to reduce the impact of potential price hikes.
“So you can figure out how much fuel you need now, at least. When the fuel increases, you’ve got that reserve that businesses can use during those times.”
Mr Koroilavesau added that transport operators may also look at reducing fuel consumption by slowing vessel or vehicle speeds.
“So if you reduce your speed in the vessels or vehicles that you are using, then the consumption of fuel is much lower.
“The consumer themselves, they do not have much options because there are just fewer transporters around.”
Mr Koroilavesau said the extent of the impact would largely depend on how long the war in the Middle East would affect global fuel supply.
“My message to the people is that we’ve gone through COVID. And I think to try and buffer the extra cost that will come with the issues in the Middle East, you need to do a lot of alternative source of income.”
Mr Koroilavesau said households could also supplement family consumption through activities such as fishing and small-scale food production.
