The Vanuatu Government has announced a significant increase in fuel prices, with diesel (mazut) expected to rise by 99 Vatu per litre early next week.
Prime Minister Jotham Napat made the announcement during a press conference today, confirming that the price of diesel will increase from 155VT per litre to around 254VT per litre.
The increase comes amid ongoing global fuel price pressures, which are now affecting local markets.
“On the side of diesel, we will see an increase from 155VT per litre to around 245VT to 254VT per litre. This is expected to take effect early next week,” the Prime Minister said.
The government has acknowledged that the price increase is likely to affect other essential sectors, including transportation and the cost of goods and services.
In response, the Council of Ministers has approved a subsidy package totaling 329 million Vatu to help cushion the impact on the public.
“Council has approved a subsidy package of over 329 million Vatu to support key sectors,” the Prime Minister said.
Out of this amount, 150 million Vatu will be allocated to support the transport sector, including buses, taxis, and small boats such as banana boats.
The subsidy will provide approximately 15,000 Vatu per month for two months to assist public transport operators.
“This support is to help maintain current transport prices. We should not see any increase in fares, particularly for land transport, as the subsidy is designed to help operators manage fuel costs.”
The government says the financial support is aimed at keeping transport costs stable despite rising fuel prices driven by global market conditions.
The Council of Ministers has also directed the Ministry of Finance to declare a financial emergency to allow the release of funds and fast-track the process through Parliament.
