Fiji cannot escape fuel increase says Department of Energy
Aug 8, 2008, 14:11

The Department of Energy says that Fiji cannot escape impacts of these fuel increases since we are on the last line of the fuel supply chain and our country will always be at the mercy of these countries, who control the world fuel market.

Director Vilimone Vosarogo said this trend will continue and will only get worse if Fiji does not commit itself to doing something about it.

“ It is based on diminishing oil reserves, coupled with rising fuel consumption in the top nations followed by developing countries like Fiji,” he said.

“ I don’t think we have seen the worst of these price hikes as yet, it will take time before the multiplier effect gets a hold on the other areas of our life which are related to energy use like bus fare, cost of goods and services, electricity costs, and almost everything else.

Mr Vosarogo said increasing fuel prices will bankrupt individual citizens due to poor buying power of their pay packet and it will cripple the nation due to heavy import fuel bill.

“ On a national level import fuel bill alone will surpass total exports, if not this year, definitely the next. It adds a bit of challenge to the Bio-fuel unit and Department of Energy as a whole as we have to review our targets and timeframe to get these projects off the ground and into production as quickly as possible,” he said.

“ Furthermore, we’ll have to review our blend as we might have to increase bio-fuel component into the national fuel balance.

Mr Vosarogo said it’s now clear to them that the direction taken by the bio-fuel unit to develop bio-fuel in this country is very urgent and it might require selective concessions on some of the bureaucratic criteria’s and policies, for the speedy implementation of this highly demanded bio-fuel ethanol mills and modular bio-diesel processing plants.

“ The Department of Energy faces an uphill battle to address this national initiative of trying to combat these rising fuel costs but we are capable of measuring up to the challenge. It was only last year we were presenting ideas as how to address high energy cost impacts, before it becomes critical. Now it is here and it is not envisaged to go away any time soon,” he said.

Mr Vosarogo said they will it be looking at ways to speed up process for the introduction of bio fuel into Fiji.

” Definitely, successful countries whoever have implemented similar bio-fuel projects, and are enjoying its benefits now, like China, Brazil, Malaysia, Philippines, all went through the same experiences as we are going through now,” he said.

“ The only difference was these countries were proactive and were highly committed, backed with massive injection of funds towards their bio-fuel development program. Now the only option left for Fiji is to follow suit and be running very fast with its programs to make up lost grounds. At least that will alleviate some of the economic impacts of the rising tide of oil prices.




-End-
(No.1320)