Mollyn Nakabea 
The escalating war in Iran is expected to cause economic impacts beyond the Middle East.
Rising tensions around the Strait of Hormuz is raising concerns that the cost of fuel and everyday goods could rise.
Former Finance Minister Professor Biman Prasad said, prices will likely increase as a result of a shift in oil prices.
“If the energy costs go up, energy feeds into every economic activity, every production process, including transportation, freight, and that can lead to increasing prices.”
Professor Prasad states that an increase in oil prices would not only lead to rise in the cost of imported items but also locally produced goods.
“The cost of fertilizer and weedicide, we decide all these things could go up and that will have an impact on the farmers. And so the farmers, when they come out with the produce, they will obviously be asking for higher prices in the market. So not just imported goods, but also locally produced goods can also increase.”
Finance Minister Esrom Immanuel says the uncertainties raises the concerns over energy security.
“There will be price pressures on us going forward. We haven’t analyzed in detail the financial ramifications but we are certain that it will affect Fiji.”
Fijians have been advised to readjust their spending as a precaution against potential rises in the cost of living.
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