Pacific Islands Appeal for Fuel Supply Support Amid Middle East Conflict
Leaders of several Pacific nations have called for assistance with oil supplies while cautioning against panic buying, as these import-dependent countries face concerns over potential fuel shortages and rising prices triggered by the ongoing conflict in the Middle East.
Oil prices surged to nearly $110 per barrel following attacks on energy infrastructure in Iran and the Gulf states.
“Pacific island nations are especially vulnerable to fuel supply disruptions and rising costs because [most countries] rely almost entirely on imported fuel,”said Paul Barker, executive director at the Institute of National Affairs in Papua New Guinea.
“Many of these economies are relatively weak, with limited purchasing power and strong reliance on remittances and foreign aid, leaving them exposed to global price shocks,”Barker added.
He further noted that increased fuel prices threaten vital sectors such as tourism and complicate the delivery of essential government services to remote islands.
Fuel Dependence and Government Responses in Samoa and Tonga
In Samoa, approximately two-thirds of the country's energy generation depends on imported diesel fuel.
Following a meeting with New Zealand Prime Minister Christopher Luxon, Samoan Prime Minister La’aulialemalietoa Leuatea Schmidt expressed concerns about fuel security and requested possible fuel diversion support in case of crisis.
“We don’t know what’s going to happen next,”La’aulialemalietoa stated.
He explained that Samoa sources its fuel from Singapore and other countries but has sought New Zealand's assistance to provide coverage should disruptions occur.
Similarly, in Tonga, where 80% of energy generation relies on imported diesel, Prime Minister Lord Fakafanua indicated that New Zealand and Australia are sharing intelligence to help Tonga prepare for potential shortages.
“What we can do is prepare as best we can, and part of that is the sharing of intelligence with our partners such as Australia and New Zealand. My concern is about ensuring that we have enough energy for the country,”he said, adding,
“for now we seem to be OK.”
Tourism constitutes 25% of Samoa’s GDP and 11% of Tonga’s, heightening concerns for these nations as airlines face significant cost pressures due to rising jet fuel prices.
Fuel Price Impact and Government Measures in Papua New Guinea
In Papua New Guinea (PNG), prices for petrol, diesel, and kerosene have increased. Despite being a liquefied natural gas exporter, PNG imports refined fuel, making domestic prices vulnerable to global oil market fluctuations.
Petroleum Minister Jimmy Maladina stated that the government is collaborating with suppliers to maintain fuel availability in the coming months.
“Our biggest concern in PNG is storage capacity,”Maladina said this week, adding that the government is monitoring the situation and will intervene if necessary.
Businesses in the capital, Port Moresby, have experienced the effects of higher fuel prices.
Janet Sios, co-owner of Paradise Private Hospital, reported that rising fuel costs have increased food and service prices, with expectations of further deterioration in the coming weeks.
“There is less fuel available, and that is increasing costs across the board. Another price increase is expected in April [by authorities in PNG] so people need to start factoring in higher transportation costs,”she said.
Sios also noted that medicine costs have risen due to increased freight and supply expenses, warning that business owners should prepare for worsening conditions over the next few months.
Government Advisories Against Panic Buying in Fiji and Papua New Guinea
In Fiji, with a population just under one million, the government urged citizens to avoid unnecessary fuel stockpiling, cautioning that panic buying could strain supply systems and cause temporary shortages at service stations.
On 8 March, the Fijian government reassured the public that fuel shipments remain on schedule. The Prime Minister stated in a press conference that the country maintains approximately 20 to 30 days of fuel reserves and that the situation is under close observation.
Similarly, the PNG government issued a statement on Tuesday emphasizing that there is no need for panic buying or stockpiling, affirming that fuel stocks are sufficient, with reserves ranging from 20 to 45 days depending on the product.
Summary
Pacific island nations, heavily dependent on imported fuel, are facing challenges due to rising oil prices and supply uncertainties linked to the Middle East conflict. Governments in Samoa, Tonga, Papua New Guinea, and Fiji are taking measures to secure fuel supplies and advise against panic buying, while industries such as tourism and healthcare brace for the economic impact of increased fuel costs.
Agence France-Presse contributed to this report.
