Act Now Before Prices Rise, Chaudhry Warns Government

Labour Leader Mahendra Chaudhry is urging the Government to take immediate pre-emptive action to shield ordinary Fijians from the economic impact of the escalating crisis in the Middle East.

Mr Chaudhry said the Government should not adopt a “wait-and-see” approach, warning that rising global energy prices and supply disruptions could soon affect Fiji’s economy.

While the impact has not yet been fully felt locally, he said global energy markets are already showing signs of volatility that could eventually translate into higher fuel and food prices in Fiji.

“We are in the calm before the storm,” Mr Chaudhry said.

“Our economy is too fragile to weather the shock of the current geopolitical crisis. It lacks the resilience to shield our people from the impending impact of escalating fuel prices and the inflation it will fuel.”

Mr Chaudhry said global oil and gas prices have surged in recent days and could rise further if tensions in the Middle East continue.

He warned that prolonged instability in the region could lead to higher crude oil prices, increased shipping costs and rising prices for food and essential consumer goods.

“Tensions of this magnitude in the Middle East will not only lead to a spike in crude oil prices and shipping surcharges, it will also have a devastating impact on the price of food and consumer items and will send inflation spiralling,” he said.

Mr Chaudhry said the country cannot afford to wait until higher fuel prices begin affecting transport costs and basic household expenses.

“We cannot afford to wait until the price of bread and bus fares go up before we act,” he said.

The Labour Leader also claimed that Fiji’s economy remains heavily dependent on tourism and warned that rising global fuel prices could impact travel demand and economic stability.

Mr Chaudhry has proposed a three-point pre-emptive plan which he believes could help cushion the impact on ordinary Fijians.

The plan includes a temporary reduction or suspension of certain fuel duties if global prices reach a predetermined level, engagement with importers to ensure essential food items are protected from sudden freight cost increases, and greater transparency on Fiji’s fuel reserves to ensure the country can manage potential supply disruptions.

Mr Chaudhry said early action is critical to protecting households from rising living costs.

“The Government’s usual habit of only acting after the people are suffering must end,” he said.

“We must build our economic defences now. If we wait for the fuel price to rise at the pump, it is already too late for the mother struggling to balance her weekly budget.”