Australia has stepped in with $48 million in targeted budget support to help Fiji manage rising fuel costs and supply pressures, as global energy markets remain volatile.

Speaking at a press briefing in Suva, Australia’s Foreign Minister Penny Wong said the funding is aimed at easing the immediate impact of fuel price shocks while strengthening Fiji’s role as a regional fuel hub.

She acknowledged that Fiji and the wider Pacific are being disproportionately affected by global disruptions, particularly due to tensions in the Middle East.

“Australia will provide 30 million Australian dollars in targeted budget support to assist with Fiji’s fuel response. We understand the extent to which this is being felt as a price shock in Fiji and we want to provide our assistance.”

Wong highlighted that while only about 20 percent of global oil passes through key Middle Eastern routes, around 80 percent of fuel bound for the Pacific depends on these supply lines, making the region especially vulnerable.

She said Australia is actively engaging with major energy suppliers in Asia including Japan, China and South Korea to ensure fuel continues flowing into the Pacific, while also providing technical support to partners like Fiji.

The assistance, she added, will also reinforce Fiji’s position as a key storage and distribution hub for smaller Pacific nations, helping to stabilise supply across the region.

Wong stressed that Australia remains committed to standing with Pacific countries during crises, noting that a Pacific-led response to global shocks is crucial for long-term resilience.

Her announcement comes amid growing concern over fuel affordability, with rising costs impacting transport, electricity, agriculture and tourism sectors across island economies.