FCCC Acted Too Early on Fuel Prices, Says Abraham

Asia-Pacific Regulatory Centre Executive Director Joel Abraham says Fiji’s latest fuel price increase came earlier than it should have under the country’s usual pricing policy, and would typically have been expected around May.

In a statement, Abraham said while rising global oil prices made an increase inevitable, the key issue was not the price itself but how early it was passed on locally, leaving households and businesses with little to no time to prepare.

He explained that Fiji’s fuel pricing system normally includes a lag of about one to two months between global price movements and domestic prices, meaning recent global increases would typically have been reflected closer to May.

However, the latest determination appears to have incorporated more recent international price data, including March averages, effectively bringing the increase forward.

This has raised concerns that the usual pricing approach may have been adjusted or applied differently, without clear public explanation.

“The issue is not whether prices should increase; they must, given global conditions. The issue is that the timing of this increase has removed a critical window that the government had to respond in a coordinated and measured way,” Abraham said.

He said that the window would have allowed the government to finalise response measures, engage industry stakeholders, and prepare support strategies before the impact reached households and businesses.

Instead, the earlier-than-expected increase has placed immediate pressure on the cost of living and reduced the time available for coordinated policy action.

Abraham stressed that fuel pricing is not just a technical calculation, but also requires judgment, especially during periods of global instability.

“Speed is not always prudence. In moments like this, discipline in timing is as important as accuracy in pricing,” he said.

He warned that passing on global price increases too quickly can amplify economic stress, accelerate inflation, and weaken the effectiveness of the government’s response.

Abraham added that the situation highlights the need for clearer communication and a more structured framework to manage fuel shocks in the future.

Abraham is the former CEO of the Fijian Competition and Consumer Commission