Leader of the Opposition Inia Seruiratu has called on the Government to temporarily remove or significantly reduce VAT on fuel, warning that the latest fuel price increases will place even greater pressure on households already struggling with the rising cost of living.
In a statement following the fuel price increases that took effect on 1 June, Seruiratu said the impact would extend far beyond motorists.
“The increase in fuel prices is not just about what motorists pay at the pump. It will have a direct impact on transportation costs, food prices, freight charges and the overall cost of living.”
“Every household, every business, every farmer and every worker will feel the effects of this increase.”
Seruiratu accused the Coalition Government of failing to provide meaningful assistance to ordinary Fijians as fuel costs continue to climb.
“What we are witnessing today is a Government in chaos and panic, unable to provide meaningful and direct assistance to ordinary Fijians who now have to pay an arm and a leg simply to get to work, take their children to school, run their businesses, or carry out their daily activities.”
He also questioned the Government’s handling of the recently announced AUD$30 million grant from Australia, noting that former Finance Minister Professor Biman Prasad had confirmed in Parliament that the funding would not be used to provide direct fuel relief.
“Instead, the money will be absorbed into the Government’s consolidated fund and spent according to its own priorities.”
Seruiratu said there was still an immediate option available to ease pressure on consumers.
“I call on the Government to temporarily remove or substantially reduce the 12.5 per cent Value Added Tax charged on fuel.”
“Such a measure would provide immediate relief to consumers, assist transport operators, reduce pressure on businesses and help prevent further increases in the cost of goods and services.”
The Opposition Leader argued that reducing VAT would help cushion the impact of rising fuel prices and limit the knock-on effects across the economy.
Beyond fuel taxes, Seruiratu urged Government to expand work-from-home arrangements across the public service wherever practical, saying this would reduce transportation costs for workers and help households manage fuel-related expenses.
He also renewed calls for Government to reduce its own expenditure, including a review of Cabinet.
“For years, I have consistently called for a reduction in the size of Cabinet. Fiji has too many Ministers and Assistant Ministers and many have failed to demonstrate meaningful performance or deliver tangible results for the people.”
“The Prime Minister must now undertake a serious review of Cabinet and remove non-performing and under-performing Ministers and Assistant Ministers.”
Seruiratu also questioned ongoing overseas travel by Ministers and Permanent Secretaries despite directives aimed at limiting official travel.
“At a time when the Government is asking Fijians to tighten their belts, those at the highest levels of Government must do the same.”
He said the Government must move beyond explanations and implement practical measures to help citizens cope with rising fuel costs.
“The fuel crisis requires urgent action. The Government must stop making excuses and start implementing practical solutions that provide real relief to the people of Fiji.”
