Govt move to cushion fuel price increase, PM highlights the need to invest in renewable energy
By Solomon Lofana
Solomon Star, Auki
The Government is preparing a series of measures to cushion the impact of rising fuel prices across the country.
This following the ongoing war between Israel, United States and Iran in the middle east, that affected the price of fuel globally.
Speaking in his first press conference in Auki, Malaita province on Wednesday, Prime Minister Jeremiah Manele said the Government is working with the Solomon Islands Ports Authority (SIPA) and the Solomon Islands Maritime Authority (SIMA) to reduce tariffs and charges.
He said plans are also underway to remove fuel import duty and Goods and Services Tax (GST), with the Ministry of Finance and Treasury currently preparing a submission for Cabinet.
“These measures are intended to cushion the impact of rising fuel prices in the coming months,” Mr Manele said.
The Price Advisory Committee is also reviewing pricing mechanisms to ensure fairness for consumers and the smooth implementation of any changes.
Mr Manele said the global increase in fuel prices, driven by conflict in the Middle East, is affecting all economies, including Solomon Islands.
“We will feel the impact in transportation, electricity and other utilities,” he said.
Minister for Finance and Treasury Rexon Ramofafia said the Government is working with key stakeholders, including fuel importers and state-owned enterprises, to address the situation.
“We are working closely with fuel importers and relevant authorities and will soon submit a paper to Cabinet to better prepare for the months ahead,” Mr Ramofafia said.
He acknowledged that enforcing price controls, particularly in rural areas, remains a challenge, with some businesses taking advantage of the situation. He said monitoring will be strengthened to ensure fair pricing nationwide.
Meanwhile, Prime Minister Manele highlighted the need for long-term energy security solutions, noting the country’s heavy reliance on imported fossil fuels such as diesel and petroleum.
“This crisis reminds us that we must explore and invest in renewable energy sources,” he said. “That means investing in solar, hydro and biomass. I believe the future of our energy security lies in renewables.”
Secretary to the Prime Minister Dr Melchior Mataki also stressed the importance of energy diversification.
“Ensuring a good mix of energy sources and exploring alternatives is one of our long-term goals,” he said.
The Government remains committed to strengthening energy resilience through renewable energy development.
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