Reliant on imported fuel, Pacific islands appeal for help as oil prices surge | Pacific islands

Leaders of some Pacific nations have called for help with oil supplies, while others oppose “panic buying” as import-dependent nations grapple with fears about possible fuel shortages and rising costs caused by war in the Middle East.

Oil prices rose to around $110 per barrel following attacks on energy infrastructure in Iran and Gulf countries.

“Pacific island nations are particularly vulnerable to fuel supply disruptions and rising costs because [most countries] “We are almost entirely dependent on imported fuel,” said Paul Barker, director general of the Institute of National Affairs in Papua New Guinea.

“Many of these economies are relatively weak, with limited purchasing power and a strong dependence on remittances and foreign aid, leaving them vulnerable to global price shocks,” Barker said.

He added that high fuel costs threaten key sectors such as tourism and “make it increasingly difficult to deliver essential government services to remote islands”.

In Samoa, approximately two-thirds of the country’s energy production comes from imported diesel fuel.

Speaking after his meeting with New Zealand leader Christopher Luxon, Samoan prime minister La’aulialemalietoa Leuatea Schmidt said that he asked whether it was possible to direct fuel to his country in case of crisis.

“We don’t know what will happen next,” La’aulialemalietoa said.

He said Samoa sources its fuel supplies from Singapore and other countries but asked Luxon to help “protect us in case something happens.”

In Tonga, where 80% of energy production is provided by imported diesel fuel, Prime Minister Lord Fakafanua said that New Zealand and Australia were “sharing intelligence” with his country to help them prepare for shortages in the best possible way.

“What we can do is prepare as best we can, and part of that is intelligence sharing with our partners like Australia and New Zealand. My concern is to make sure we have enough energy for the country,” he said, adding “we’re looking good for now.”

Tourism accounts for 25 percent of Samoa’s GDP and 11 percent of Tonga’s; This raises concerns for countries that are heavily dependent on airlines, which face huge cost pressures due to the price of jet fuel.

Gasoline, diesel and kerosene prices have increased in Papua New Guinea. Although the country, with a population of approximately 10 million, is an exporter of liquefied natural gas, it still imports refined fuel and domestic prices remain vulnerable to the global oil shock.

Petroleum Minister Jimmy Maladina said the government was working with suppliers to ensure fuel continues to flow in the coming months.

“Our biggest concern in PNG is storage capacity,” Maladina said this week, adding that the government was monitoring the situation and would take action if necessary.

Businesses in the capital Port Moresby have felt the impact of high fuel prices.

Janet Sios, part owner of Paradise Private Hospital, said rising fuel costs were driving up prices for food and services and the situation was expected to worsen in the coming weeks.

“The amount of available fuel is decreasing, which increases costs. Another price increase is expected in April.” [by authorities in PNG] so people need to start factoring in higher transportation costs,” he said.

Sios said drug prices have increased due to increased transportation and supply costs. He said business owners in the country “should be prepared for conditions to deteriorate over the next few months.”

In Fiji, the government said Tuesday there was “no need for panic buying or stockpiling.” It was stated that there is sufficient fuel stock in the country and the reserves vary between 20 and 45 days depending on the product.

Fiji’s population is just under 1 million. The government has warned of supply impacts, urging people to “avoid unnecessary stockpiling” of fuel.

“Panic buying can put pressure on supply systems and lead to temporary outages at service stations,” he said.

In its latest update, the Solomon Islands government assured citizens on March 8 that current fuel shipments to the country would continue as planned. The Prime Minister said at the press conference that the country has approximately 20 to 30 days of fuel supply and that the situation is being closely monitored.

Agence France-Presse contributed to this report