Government takes steps to manage fuel prices amid global volatility

The Solomon Islands Government is taking proactive measures to cushion the impacts of the increase in fuel prices amid global fuel market volatility that is triggered by the ongoing conflict in the Middle East.

The Cabinet on Thursday, 9th April, approved policy options, including fuel tax relief and strengthening strategic fuel reserves, to cushion the impact on households and businesses.

Policy commitment to accelerating the transition to renewable energy and alternative fuels to reduce long-term diesel dependency.

Current fuel prices in Honiara are 8.2649 cents per litre for petrol, 9.2649 cents per litre for diesel, and 8.5225 cents per litre for kerosene.

The current fuel stock is stable, with 30 days of cover with assurance on stock supply from the refineries until September 2026. 

The Government has also been assured by the local importers on sourcing fuel supply from other suppliers.

The government’s plans include strengthening strategic fuel reserves by increasing domestic fuel storage capacity to 50-90 days.

To ease the impact of rising fuel prices, the government approved the short-term tax relief measures, which, if fully implemented, may result in a fiscal cost of approximately SBD$111 million annually.

The government will also take expenditure control measures, restricting government vehicle usage, domestic and overseas travel, and prioritising essential services.

The Price Advisory Committee will monitor global fuel prices and adjust domestic prices accordingly.

The government urges consumers to adhere to approved fuel prices and report any instances of overpricing or price gouging to the Ministry of Commerce, Industry, Labour and Immigration. The Government will consider policy options in the coming weeks to regulate and control fuel as well as freight prices across the country.

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GCU statement