[Photo: FILE]

The Government has hinted that the recent increase in global oil prices could hit Fijians soon.

In a statement, Finance Minister Esrom Immanuel confirmed oil prices have increased significantly from around US$60 per barrel last year to approximately US$84 per barrel today.

Emmanuel said as a small island economy and a price taker in global markets such increases would post significant challenge for Fijian businesses, consumers and the product economy.

Emmanuel adds that higher fuel prices will affect transportation cost production cost in household expenses, placing upward pressure on inflation and cost-of-living.

At the same time if global economic conditions weaken, Fiji could face additional challenges through softer tourism demands, reduced export demand and slower investment flows.

He said the government is particularly mindful of the potential impact on the tourism sector and national carrier Fiji Airways as rising fuel cost and weaker global demand called affect travel and tourism activity, noting, that tourism remains a key driver of Fiji’s economy and any slowdown would have brought implications for growth employment and foreign exchange earnings.

The finance minister said government is also closely observing how the conflict may affect the economies of our trading partners, global stock market and overall global economic stability and that this development will influence straight tourism flows invest investment and overall economic growth.

However, he said while these risks are real, there is no need for panic.

“Fiji currently has adequate Foreign Exchange resource which provide an important puffer against external shocks. Social protection frameworks are flexible enough to respond with me to getting measures if required. Government will continue to assess the situation carefully and will explore options to support consumers and businesses should global condition worse.”

The finance minister said it is important that Fiji remain vigilant and prepared.

He further said government will continue to keep the public informed our situations evolve

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