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  • Writer's pictureNational Federation Party - Fiji

Rise in food prices linked to fuel price hike

October 1, 2021

Government should remove extra 20 cents per

litre fuel tax

The Fiji First Government is shamelessly plunging people into misery due to its refusal to remove the 20 cents per litre extra fuel tax imposed from April 2020 and being the primary cause of the rise in inflation and cost of living, says National Federation Party Leader Professor Biman Prasad.

Professor Prasad said the rise in food prices by 6.9% is linked to the fact that fuel prices have risen by an average of 36.5% when compared to the same period last year, as determined by the Reserve Bank of Fiji.

He said for example, the price of unleaded fuel has gone up by a massive 66.6% when compared to April 2020 price of $1.66 per litre inclusive of 20 cents per litre extra tax.

“It also proves that duty reductions, first announced in the 2020-21 Budget last year and continued this financial year are not working towards alleviating the plight of our people”.

“The NFP has repeatedly called on Government to remove the 20 cents per litre extra tax on fuel. Already, taxes on fuel were high. But this government didn’t bother back in March 2020 and nor is it worried about the struggles of our people”.

“The Minister justified, while delivering the Covid Response Budget in March 2020 that despite the imposition of the extra tax, fuel products would be cheaper and one of the lowest anywhere in the world”.

“Clearly this isn’t the case. But there is not even the fluttering of an eyelid by the Minister and other Government Members on the sobering reality”. And worse of all, this from a government that brags about leaving no one behind or giving people a leg up.”

”A consumption-driven economy during better years only made government’s projections look good. So it wasn’t sustainable or real growth, which has now resulted in taxing the people through exorbitant prices of food and fuel”.

“Any kind, caring and compassionate government will remove all forms of additional financial burden on struggling families”.

“Government should change course now. Piecemeal assistance, overshadowed by financial burden leads to a chain reaction and inevitably escalates poverty”,

“Remove fuel duty immediately. That is the least this government can do”.

Professor Biman Prasad



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