Prime Minister Lord Fakafanua has received assurances from Fiji that Tonga’s fuel supply remains secure, following a call this morning with Fijian Prime Minister Sitiveni Rabuka.
The discussion focused on safeguarding Tonga’s fuel shipments, which travel through Fiji from Singapore, and ensuring continued regional coordination to maintain supply stability.
Fuel prices across the Pacific, including New Zealand, have surged in recent weeks due to the escalating Middle East conflict, which has disrupted shipments through the Strait of Hormuz — a critical route that carries about 20 percent of the world’s oil supply.
Analysts warn the situation could trigger a “global energy crisis,” pushing crude oil prices above US$100 per barrel and driving up costs for import‑dependent Pacific nations.
Prime Minister Rabuka confirmed Fiji’s strong cooperation and reassured Lord Fakafanua that Tonga’s fuel supply chain remains safe and uninterrupted, the Prime Minister’s Office said in a statement.
The call comes as Pacific nations continue to face increasing pressure from global fuel market volatility, affecting transport, livelihoods, and national energy resilience.
New Zealand Introduces Support Package Amid Rising Fuel Prices
While Tonga received confirmation of supply security, neighbouring New Zealand is taking domestic steps to address the impact of surging fuel prices on families.
The Luxon-led government announced today that approximately 140,000 families with children will receive an extra NZ$50 per week through an increase to the In‑Work Tax Credit (IWTC), aiming to ease cost‑of‑living pressures linked in part to rising fuel costs.
The support package excludes beneficiaries, superannuitants and households without children.
Finance Minister Nicola Willis said the policy “is carefully targeted to families in the squeezed middle — parents who are working hard for a living, are not eligible for main benefits, and yet have modest household incomes with which to support their children.”
The package was unveiled at Parliament by Prime Minister Christopher Luxon and Finance Minister Nicola Willis, who emphasised that the targeted support is intended to avoid driving inflation higher.
The increase will take effect from 7 April and will be delivered weekly or fortnightly depending on payment schedules. Around 143,000 families, along with an additional 14,000 families receiving an abated rate of the credit, will benefit from the change.
Beneficiaries and superannuitants will not receive this particular increase, with the Government noting their payments are adjusted separately from 1 April each year.
The IWTC is available to families with dependent children where at least one parent is in paid employment and neither receives a main benefit from Work and Income.
The measure aligns with the Government’s broader fuel‑price response strategy, with Finance Minister Willis noting the importance of targeted, timely, and temporary support to prevent additional inflationary pressure.
The contrasting developments highlight the interconnected challenges Pacific nations face due to rising global fuel prices.
- Tonga, dependent on imported fuel routed through Fiji, has sought assurances to prevent supply disruptions.
- New Zealand, while not facing a supply shortage, is grappling with affordability pressures on its population.
Both governments are acting to shield households and national infrastructure from the wider economic impacts of the global fuel environment.
