AAP News
(Mick Tsikas/AAP PHOTOS)
Australia is considering aid options to ensure Pacific nations have access to fuel, as the Middle East war threatens to derail several diesel-dependent island economies.
Fiji could be hit with a 115 per cent increase on its annual imported fuel costs from 2025 levels, by about $US670 million (FJD1.51 billion), if oil holds at post-shock prices, analysis shows.
This massive spike represents almost three times Fiji’s annual healthcare budget, according to Zero Carbon Analytics.
The conflict is squeezing economies worldwide, but pressures are particularly acute for small island countries that rely heavily on diesel for power generation.
Skyrocketing fuel costs drain foreign exchange reserves and risk pushing countries into high levels of debt, leaving them vulnerable to future shocks and more reliant on foreign aid.
AAP reports that Foreign Minister Penny Wong has stated that there have been talks between Australia and Pacific allies about potential support measures.
“We’re looking at what we can do and how it is we might assist, but obviously, at this time, our priority has to be to secure supply for Australians. We’re a responsible Pacific partner, we’ll continue to work with them and look at what we can do to support them through this.”
Australia and the Pacific are set to play key roles in the 2026 United Nations climate talks, with the larger nation running multilateral negotiations and pre-meeting leadership events in Fiji and Tuvalu.
