Prime Minister addresses SIG–Development Partners Dialogue on Fuel Price Impacts and Tropical Cyclone Maila Response

Prime Minister, Hon. Jeremiah Manele this morning addressed the Solomon Islands Government (SIG) and Development Partners’ Dialogue, setting out the Government’s policy response to the compounded impacts of Tropical Cyclone Maila and escalating fuel prices driven by global geopolitical developments.

In welcoming Heads of Mission, representatives of development partners, and distinguished stakeholders, the Prime Minister conveyed the Government’s profound appreciation for the enduring partnership, solidarity, and constructive engagement demonstrated in supporting Solomon Islands through a period marked by complex and overlapping challenges.

Addressing the impacts of Tropical Cyclone Maila, the Prime Minister underscored the extensive damage sustained across affected regions, particularly Western and Choiseul Provinces, both of which remain under a State of Disaster.

He articulated that the Government, through the National Disaster Council, promptly activated a coordinated, whole-of-government response mechanism and committed SBD 10 million towards immediate humanitarian assistance. 

These national efforts have been significantly reinforced by the timely support of development partners, non-governmental organizations, United Nations agencies, the private sector, and local communities.

Prime Minister Manele further announced that the Cabinet has approved the National Response and Early Recovery Plan (NRERP), with an estimated total cost of SBD 118.7 million, of which approximately 92 per cent remains unfunded. 

The Plan articulates three strategic priority areas:

• Humanitarian assistance and early recovery, including shelter, water and sanitation, and food security;
• Rehabilitation of critical infrastructure, particularly in the education and health sectors;
• Long-term recovery anchored in climate-resilient reconstruction and sustainable development principles.

The Government respectfully calls upon development partners to extend financial and technical support to bridge the substantial funding gap and facilitate the timely and effective implementation of recovery interventions.

On the rising fuel costs, the Prime Minister highlighted the adverse domestic implications of global market volatility linked to ongoing tensions in the Middle East. 

As a fuel-import-dependent economy, Solomon Islands continues to face increased costs across transportation, energy, and essential goods and services.

In response, Cabinet has endorsed a set of temporary fiscal measures aimed at mitigating the immediate burden on households and businesses:

• 100 per cent exemption on import duties for fuel;
• 100 per cent exemption on sales tax on fuel;
• 50 per cent reduction in goods tax on fuel.

The Prime Minister acknowledged that these interventions, while necessary, are projected to result in a revenue shortfall of approximately SBD 115 million in the current fiscal year, thereby intensifying pressures on the national budget amid ongoing disaster response commitments.

He further indicated that the Government is actively engaging with development partners to explore avenues for targeted budget support, concessional financing, and policy-based assistance, complemented by prudent domestic measures to safeguard macroeconomic stability.

The Prime Minister emphasized that the dual challenges of disaster recovery and fuel price escalation are inherently interconnected, with cumulative socio-economic impacts that necessitate coordinated, flexible, and sustained international support.

He reaffirmed the Government’s unwavering commitment to transparency, accountability, and the effective utilization of public resources, in full alignment with national systems and frameworks. 

In this regard, development partners are encouraged to Support the implementation of the National Response and Early Recovery Plan; Assist in mitigating the socio-economic impacts of rising fuel prices and Invest in long-term energy security and climate resilience initiatives.

The Prime Minister expressed sincere appreciation for the continued solidarity and engagement of development partners, underscoring that strengthened cooperation will be indispensable in navigating present challenges and advancing a more resilient, inclusive, and sustainable Solomon Islands.

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Prime Minister’s Press Secretariat