Energy Fiji Limited has warned that Fiji could face controlled load shedding or nationwide power rationing from next month if urgent fuel cost recovery support is not secured.

EFL Chief Executive, Fatiaki Gibson says the country’s electricity system is under severe pressure due to escalating global fuel prices, increased reliance on thermal generation, and declining hydro capacity as the dry season approaches.

Gibson says the situation follows unprecedented volatility in international fuel markets caused by geopolitical tensions in the Middle East and disruptions to global fuel supply chains, including instability around the Strait of Hormuz.

He says Brent crude oil prices recently surged to exceptionally high levels and continue to remain well above EFL’s original fuel budget assumptions.

The CEO says that the current fuel prices are financially unsustainable under the existing electricity tariff structure.

EFL highlights that Industrial Diesel Oil generation is currently costing 86.70 cents per kWh compared to an average selling price of 38.4 cents, while Heavy Fuel Oil generation is also exceeding recovery levels.

EFL also raised concerns over falling water levels at the Monasavu Dam, which are below preferred operating levels, with hydropower expected to drop to around 30–35 percent during the dry season.

The company warns that without financial support, it could face negative cash flow from July 2026 and increasing liquidity pressures in the second half of the year.

EFL says it has already engaged the government and the Ministry of Finance for budget assistance and is awaiting a decision from the Fijian Competition and Consumer Commission on its fuel surcharge application.

Under its operational response plan, EFL says it will continue normal operations if full support is received by this Friday however, partial or no support could trigger rotational load shedding or full power rationing from 1 June .

Gibson has assured that essential services such as hospitals, water supply, airports, and emergency services would be prioritized under any contingency measures.