BY NED GAGAHE
Prime Minister Jeremiah Manele has assured Solomon Islanders that fuel supply in the country remains secure despite rising global prices driven by the ongoing conflict in the Middle East.
Speaking to local media on the national fuel situation and government response yesterday, Manele said the global fuel crisis has led to supply disruptions and sharp price increases since late February.
“As of now, global fuel prices remain elevated, with petrol trading above US$100 per barrel and diesel around US$115 per barrel,” he said.
He said that Solomon Islands, like most Pacific nations, relies heavily on imported fuel, with nearly all supplies sourced through Singapore, which depends on crude oil from the Middle East.
Based on information from the country’s two fuel importers, the Price Advisory Committee, and a working group comprising key government ministries and the Central Bank, Manele reassured the public that supply commitments are secure for at least the next six months.
Shipping routes also remain stable, with fuel tankers arriving every three to four weeks. Domestic storage capacity is sufficient to provide more than 40 days of supply after each delivery.
He added that the supply of LPG cooking gas remains adequate, both in-country and in transit.
While supply remains stable, Manele acknowledged that rising global prices are now being felt locally.
Fuel pricing in Solomon Islands is determined by the Price Advisory Committee in consultation with importers. Under normal conditions, a two-month pricing lag was sufficient, but recent volatility has prompted the introduction of a price-smoothing mechanism.
“This ensures that increases are introduced gradually rather than in sudden spikes,” he said.
The first adjustment under this mechanism took effect on April 20, with another expected in early May.
In response to the rising costs, the government has introduced several fiscal measures to ease the burden on households and businesses. These include full exemptions on import duties and sales tax, as well as a 50 percent exemption on goods tax.
Manele acknowledged that while these measures will significantly reduce government revenue, they are necessary to protect citizens during the current challenges.
Efforts are also underway to extend fuel pricing mechanisms beyond Honiara to better reflect conditions in rural and provincial areas.
Additional measures under consideration include temporary waivers of fuel levies and ongoing discussions with Solomon Power regarding electricity tariffs.
The Prime Minister said the government is pursuing long-term solutions to reduce reliance on imported fuel. These include progressing the Electricity Bill and promoting renewable energy options such as solar power for households and small businesses.
Manele also calls on the business community, particularly retailers, to act responsibly when adjusting prices of essential goods.
“This is a time for national solidarity, and we must all act in the best interests of our people,” he said.
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