Global disruptions to key fuel supply routes have reduced the flow of oil into international markets, tightening supply and driving up associated costs. For economies like Fiji, these external shocks are felt quickly and with limited insulation.

The recent increases in fuel and diesel prices are feeding directly into transport, production, and supply chains, placing additional strain on businesses already operating within tight margins, and will gradually extend into the cost of goods and services, affecting affordability for households across the country.

BCPs are designed for exactly this type of operating environment – where uncertainty, cost pressures, and external risks begin to intersect. If not already, businesses need to activate their Business Continuity Plans (BCPs).

This requires businesses to:

• Plan for continued increases in fuel and transport costs
• Review supplier dependencies and logistics pathways
• Manage inventory more deliberately
• Assess operational adjustments under different scenarios, including reduced hours or supply disruptions

Governments Phased Response
The Fiji Government has outlined a Fuel Emergency Plan based on a phased approach. This provides a framework for how the situation may evolve and what both businesses and the public should expect.

Phase 1: Conservation (Current Phase – above 50% stock)
Focused on reducing consumption through public awareness – encouraging carpooling, the use of public transport, and limiting non-essential travel.

Phase 2: Stronger Conservation (40–50% stock)
Measures may include reduced travel, potential adjustments to work and school schedules, and broader efforts to limit fuel usage.

Phase 3: Fuel Rationing (30–40% stock)
Controlled access to fuel, including limits on purchases, designated refuelling days, and reduced business operating hours.

Phase 4: Emergency Management (below 20% stock)
Strict prioritisation of fuel for essential services, with potential restrictions on general usage.
 
Private sector response
Across the private sector, businesses are beginning to take practical steps aligned with the current conservation phase.

This includes:
>>Reducing non-essential travel and consolidating trips
>>Encouraging carpooling and greater use of public transport
>>Reviewing delivery schedules and logistics routes to improve efficiency
 
There is also growing consideration of operational adjustments should conditions escalate, including:
Flexible work arrangements where feasible
Staggered shifts or reduced operating hours
Reviewing workforce deployment to manage costs without disrupting productivity
 
 
Cyclone Season
As recent days have reminded us, Fiji remains within cyclone season. Preparedness must therefore extend beyond cost management.
Businesses are encouraged to ensure that inventory and asset records are current and properly documented.

In the event of a cyclone or disruption, this information is critical for:

• Insurance claims
• Access to recovery financing
• Faster return to operations

Experience has shown that recovery is often delayed not by the event itself, but by gaps in documentation and preparedness.

FCEF’s Focus

As the voice of the private sector, FCEF is focused on three key areas:

1. Policy Engagement
A formal submission to the Fuel Committee, outlining recommendations including:
Clear and timely communication on fuel supply and pricing
Inclusion of private sector perspectives in regulatory decisions
Targeted support for critical sectors such as manufacturing, transport, agriculture, and MSMEs

2. Industry Engagement
FCEF is working with fuel-intensive industries, including mining, to understand the potential impact on operations and employment and flow-on effects across communities and local economies.

3. Coordination and Preparedness
Ongoing engagement with Government and partners is focused on ensuring that responses remain practical, targeted, and aligned with business realities.

Government has set the direction through its phased approach. The private sector has a role to play in supporting national conservation efforts while maintaining business continuity and economic activity.
This balance will be critical in the months ahead.