BY JOHN HOUANIHAU
A fuel price adjustment is expected in mid-April as Government moves to cushion the country from the harsh impacts expected to hit Solomon Islands in May.
Secretary of the Solomon Islands Price Advisory Committee, Edward Bamu said the adjustment is intended to gradually introduce rising fuel costs and avoid a sudden price shock for consumers.
He said the committee met this week to assess the situation, noting that April 1 price changes are part of the normal cycle.
“A fuel price adjustment will come into effect mid-April, mainly to ease the expected increase next month. This is to ensure that fuel prices do not come as a shock to consumers,” Mr Bamu said.
“Assuming the crisis continues, May price will be affected because they are based on March Mean of Platts (MOPS). We are trying to spread some of the increase into April so that prices rise gradually. Fuel prices will continue to increase until they reach a new normal, which will depend on the situation in the Middle East,” he said.
He said the actual fuel price adjustments will depend on submissions from South Pacific Oil Limited (SPO) and Markworth.
“However, the general outlook is that prices will rise. The Price Advisory Committee is waiting for template submissions from oil companies before setting the new prices. For retail prices, diesel is likely to increase the most, followed by kerosene and petrol,” he said.
Bamu urged consumers to avoid panic buying or unnecessary stockpiling, warning that such actions could strain supply chains and create artificial shortages.
“Consumers should purchase fuel based on normal needs. Fuel suppliers and retailers must also act responsibly by ensuring fair distribution. Sales should be limited to reasonable quantities to discourage hoarding and maintain compliance with pricing and supply regulations,” he said.
He said maintaining a stable and continuous fuel supply remains a national priority, especially as fuel procurement costs rise in the current global environment.
“Cooperation across the supply chain is essential to avoid disruptions,” he said.
Secretary to the Prime Minister for Special Duties, Sir Dr Jimmie Rodgers had forewarned of this significant increase in fuel prices in May during the Prime Minister’s fortnightly press conference on Sunday, March 22.
Mr Rodgers said the anticipated rise is due to a sharp increase in global fuel prices.
He said importers have already begun purchasing fuel at higher costs, with prices from the Singapore refinery rising by nearly 60 percent.
“Once the Price Advisory Committee reviews and adjusts the current pricing, we will expect a jump,” Rodgers said.
Despite the looming increase, Rodgers assured public that government is working on measures to cushion the impact.
He said possible interventions include removing taxes on fuel imports or subsidising importers to ease the burden on consumers.
Rodgers said discussions are ongoing with the country’s two main fuel importers, South Pacific Oil (SPOL) and Markwarth Oil, to strengthen supply capacity and stability.
“Once the Price Advisory Committee reviews and adjusts the current pricing, we will expect a jump,” Rodgers said.
Rodgers said while an increase in fuel prices is inevitable, the government is focused on ensuring it is not as severe as projected.
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