Government monitoring fuel supply, prices amid tension in the Middle East
BY NED GAGAHE
Prime Minister Jeremiah Manele says the Government is closely monitoring Solomon Islands’ fuel supply and prices as global tensions threaten to disrupt international supply chains.
National storage capacity of fuel is also low – of the required 90 days of fuel storage, Solomon Islands can only store enough to last 30 days should fuel supplies overseas stop.
Speaking during a press conference over the weekend, the Prime Minister said the Ministry of Finance and Treasury and the Central Bank of Solomon Islands are assessing possible measures should fuel prices increase.
He said the Government could consider targeted fiscal measures, including exemptions on fuel imports, to help cushion fuel suppliers and reduce the impact on consumers if global prices rise.
Manele acknowledged that the country’s limited fuel storage capacity remains a challenge.
“If there is a need for measures such as exemptions on fuel imports to cushion importers, that will be handled by the Ministry of Finance and Treasury together with the Central Bank,” he said.
Providing further updates, Secretary to Prime Minister (SPM)- Special Duties Sir Dr Jimmie Rodgers said Solomon Islands currently has enough fuel supply to last between 20 and 30 days.
He said that the country’s fuel storage capacity is about 30 days, while the recommended level for fuel security is around 90 days.
“Our storage capacity is limited. If all tanks are full, we can probably maintain supply for about 30 days, although the recommended level is about 90 days,” Rodgers said.
He added that fuel supply could also be affected by disruptions to key global shipping routes.
Rodgers said that a significant portion of the world’s oil supply passes through the Strait of Hormuz, while shipping routes through the Strait of Malacca are also critical for transporting fuel to the Pacific region.
Instability in these areas could potentially disrupt fuel shipments to Pacific countries, including Solomon Islands.
He said despite the risks, current fuel shipments to the country are still on schedule.
Rodgers also revealed that discussions will soon be held with fuel importers and suppliers to strengthen the country’s fuel security arrangements.
He said that fuel supply to several Pacific countries is coordinated through a regional system based in French Polynesia, which manages tanker schedules and distribution.
The planned discussions will focus on improving monitoring systems, supply coordination and fuel storage capacity to ensure Solomon Islands maintains stable fuel supply.
Rodgers added that while supply may remain stable for now, global developments could still lead to higher fuel prices.
“At this point we have enough supply in the country, but prices may still rise depending on what happens globally,” he said.
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