The Fijian Competition and Consumer Commission is closely monitoring rising tensions in the Middle East that could drive up fuel prices in Fiji.

The crisis follows US and Israeli military strikes on Iran.

The situation has raised concerns over the safety of the Strait of Hormuz, a key global oil route.

The narrow waterway sits between Iran and Oman. About 20 million barrels of oil pass through it daily. That is nearly one fifth of the world’s supply.

The strait remains open. But tensions are high. More than 150 oil and gas tankers have anchored instead of crossing.

Markets have reacted. Global oil prices are climbing.

FCCC Chief Executive Senikavika L Jiuta says Fiji will feel the impact.

“Fiji is a price taker. Any global increase will flow through to our fuel prices. Fiji imports all its fuel. Fuel makes up about 16 percent of total imports. There is a one month lag in local fuel and LPG price setting. That means global spikes can hit locally within weeks.”

Jiuta says higher oil prices will not only affect the pump.

“They can ripple across the economy. If disruption lasts less than two weeks, markets may stabilise. If it stretches between one and three months, fuel, food and goods will likely rise in Fiji.” 

What can happen?

If the strait closes fully, oil could surge to between 150 and 200 US dollars per barrel. Global inflation would jump. Transport and food costs would soar.

Transport and logistics costs would rise. Shop prices could follow. Imported food and local produce could become more expensive. Diesel powered electricity generation may cost more.

Higher aviation fuel prices could affect tourism and visitor numbers. Low income households would face the greatest strain. The length of the conflict. The US dollar to Fiji dollar exchange rate. Shipping and insurance costs. Global oil price movements.

FCCC says it will continue to monitor developments and provide updates so Fijians can prepare.

The advisory is based on the March 2026 Market Advisory and Price Forecast prepared for Fijian consumers and the FCCC. It is for general information only and market conditions can change rapidly.

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