Fiji government to absorb fuel surcharge for some SMEs

The Fiji Government has announced a multi-million-dollar relief package to completely absorb the newly approved 22.5% bus fare hike and electricity surcharges for low-income households. 

The government will absorb a newly cleared Fijian Competition and Consumer Commission (FCCC) interim fuel surcharge of 5.91 cents (US 2.95 cents) per kilowatt-hour for all subsidised domestic households and small businesses (MSMEs) earning under $30,000(US$15,000) a year.

The government says this targeted intervention ensures that more than 57,000 domestic customers will see zero price increases on their electricity bills.

It will also absorb a 22.5% increase in bus fares that was deemed necessary to prevent a transportation collapse due to soaring fuel import bills. Minister for Finance, Commerce & Business Development, Esrom Immanuel said Government will inject $2 million (US$1 million) per month to ensure that none of the approximately 350,000 commuting Fijians will not pay an extra cent out of pocket.

The financial shield also extends directly to home energy bills to counter a massive 150 percent spike in international refined oil prices. 

Minister Immanuel emphasised that this relief package will not add to national debt, heavily utilising a timely AUD$30 million (US$21 million) budget support grant from the Australian Government and internal budget reallocations. 

The Fiji Commerce and Employers Federation has welcomed government’s decision, saying it will create positive multiplier effects.

“This means workers will be able to commute to and from work without additional financial burden, while allowing business operations to continue with minimal disruption”, said FCEF CEO Edward Bernard.