Nikhil Aiyush Kumar 
[Photo: FILE]
The upcoming National Budget should place greater emphasis on energy resilience and renewable energy investment to reduce the country’s exposure to global fuel shocks, according to economics academics.
University of the South Pacific Economics Lecturer Dr Nilesh Chand says Fiji’s heavy reliance on imported fuel leaves the economy vulnerable to external price fluctuations.
He says the projected economic growth rate for this year, initially forecast at three percent, has been revised down to 1.5 percent by the Reserve Bank of Fiji, reflecting economic pressures from geopolitical challenges.
The Economist pointed to rising energy costs, including electricity tariff adjustments, as key factors affecting both businesses and households, increasing production costs and reducing disposable income.
“The growth has slowed down and even deteriorated from the start of April due to high global fuel prices and recent electricity tariff increases”
Dr Chand is calling for a stronger policy focus on renewable energy development to improve long-term economic stability.
In his views, the budget should concentrate on building energy resilience and renewable energy investments.
Head of Department for Economics and Sustainable Studies at the Fiji National University, Ashwin Deo shared similar sentiments.
“And maybe in the short term or in the long term, the government should be focusing on accelerating the renewable energy investment because we should not be dependent on imported fuel for a long period of time.”
The academics are suggesting that investment in energy diversification will not only support households but also strengthen business competitiveness by lowering operational costs over time.
