SUVA, March 3 — The Asia-Pacific Regulatory Center (APRC) is warning Pacific Island countries, including Fiji, to brace for mounting economic strain as global fuel prices climb amid rising tensions in the Middle East.
According to the APRC, international oil prices have surged following renewed military activity involving major global powers and Iranian-linked assets.
The center said that even in the absence of actual supply interruptions, oil markets are building in a geopolitical “risk premium,” driving prices higher based on fears of instability.
APRC Senior Advisor Joel Abraham said the Pacific governments must take a forward-looking approach, stressing that the impact extends far beyond fuel costs.
“It can affect transport, electricity, food prices, construction materials, aviation, and the overall cost of living across the Pacific,” he said. Abraham noted that small island economies are particularly exposed because of their heavy reliance on imported fuel and goods, warning that energy price spikes tend to ripple across entire economies.
]The APRC has launched a regional assessment examining potential consequences, such as higher petrol and diesel prices, increased maritime freight and insurance costs, fluctuating aviation fuel prices affecting tourism, rising food import bills, and escalating construction and infrastructure expenses. (Namibia Daily News/Xinhua)
