-Government’s incorporated fiscal measures defy global fuel price trends to buffer country from shocks
-Price Advisory Committee ‘fuel price smoothing strategy’ schedules two price changes for May
BY IRWIN ANGIKI
Government last night announced new fuel prices which defied expectations – petrol price dropped.
This is against the backdrop of rising global fuel prices as the war in Iran continues with no end in sight, analysts projecting continued upward price changes and price rises in neighbouring Pacific countries.
Effective midnight last night (May 1), the new price for fuel are as follows, as announced in a statement by the Government Communication Unit (GCU):
Petrol – maximum retail price is $11.05 per litre.
Diesel – maximum retail price is $14.88 per litre.
Kerosene – maximum retail price is $16.74 per litre.
This price change is a result of government’s incorporated fiscal measures aimed at buffering the country against shock from the global fuel price crisis, driven by the ongoing war in the Middle East.
GCU said without the government’s fiscal measures incorporated in the fuel price strategy, prices for fuel would have been: Petrol at $12.45 per litre, diesel at $16.55 per litre, and kerosene at $18.31 per litre.
Old prices before May 1, which were introduced on April 22, include – petrol at $12.45, diesel at $13.24 per litre.
Government also advised yesterday that there will be two price changes in May. The first one, which took effect midnight last night, and the second in mid-May, similar to April’s price change schedule.
The 2-tier price change is part of government’s strategy to ensure the magnitude of changes in fuel prices are kept as low as possible, so as not to hit hard on public, GCU said.
The price smoothing strategy of the Price Advisory Committee (PAC) of the Ministry of Commerce, Industry and Labour (MCILI) will “result in two fuel price adjustments in the month of May 2026, to ensure the magnitude of each price change is not too large – the first from May 1 and the second in the second half of the month”, GCU said.
“Government will continue to monitor the prices and provide updates on our fuel and energy security situation together with measures we can all take to increase discipline in saving energy across government and the country,” GCU statement said.
“Consumers in Honiara are reminded that maximum retail prices in Honiara are legally fixed until they are changed in the next adjustment.
“Consumers in provinces are informed the government hopes to put in place a pricing mechanism for maximum prices by zones of constituencies as soon as possible.”
Last night Fiji’s government announced new fuel prices for May in which all types of fuel (petrol, diesel, kerosene and premix) increased across the six economic zones of the country.
Fiji Sun Newspaper in its report last night described Fiji’s new fuel prices for May as a ‘steep rise in fuel costs’. New fuel prices are: Petrol at FJD 3.13 (SBD11.43) per litre, and diesel FJD3.82 (SBD13.94).
In Vanuatu, fuel price adjustments are not done on a monthly schedule but triggered by arrivals of new fuel shipments. While new prices for May are yet to be announced, reports say prices are expected to remain at the record highs established in late April. Current prices are: Petrol at 223VT (SBD15.05) per litre, diesel 254 VT (SBD17.14).
In PNG, the government’s K246 million (SBD 455.7m) relief package has allowed fuel prices to remain stable throughout May at prices set in March. Petrol at K4.39 (SBD8.13) per litre, diesel K4.44 (SBD8.22).
Meanwhile, US President Donald Trump told reporters at an event at the Oval Office, White House, on April 23 – “Don’t rush me” – when pressed on his timeline for a peace deal with Iran.
The war in Iran is in a fragile stalemate. While a temporary ceasefire remains technically in place, diplomatic progress has stalled, and military tension is high due to an ongoing US naval blockade at the Strait of Hormuz.
Photo: Supplied
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