FBC News 
Opposition MP Jone Usamate [Photo: FILE]
Opposition MP Jone Usamate is urging the government to remove VAT and duties on fuel for three months to ease pressure on households, farmers and the logistics sector.
He says the 2026-2027 National Budget, to be announced on Friday, is the right time to provide relief.
Usamate said the measure should run from July to September and would cost only a small fraction of government revenue.
He claims the government is keeping fuel prices high through its tax policies.
Usamate states the Pre-Election Economic and Fiscal Update shows global oil prices have risen because of the conflict in the Middle East.
He said the increase was driving up freight, energy and import costs across the economy.
According to Usamate, Fiji cannot control global oil prices. However, it can control the taxes imposed on fuel.
He says global shocks are unavoidable but fuel taxes are a policy choice.
Usamate claims the government cannot say it is powerless against rising fuel prices while continuing to collect more revenue from them.
He adds that if the State is truly unable to influence global fuel prices, it should explain why it collects more tax whenever those prices increase.
