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Rarotonga has sufficient fuel stocks, with shipments for all fuels due to arrive as anticipated. The Energy Response Technical Working Group will continue to monitor the global situation, our fuel stocks, energy consumption and shipments, and publish regular updates on the MFEM website.

Each outer island has its own unique issues, reflecting pre-existing constraints and challenges. The Office of the Prime Minister’s Island Governance team and the Major Projects and Procurement Support division of the Ministry of Finance continue to work with the Island Administrations to ensure diesel for electricity is stable.The Energy Response Technical Working Group will continue to monitor the global situation, our fuel stocks, energy consumption and shipments, and publish regular updates on the MFEM website.

Under the current Prepare (Amber) setting, response measures are already in place. Free buses and additional bus services have been introduced for three months, and income support has been extended to welfare beneficiaries for the same period. If conditions worsen, the Government would consider targeted income support for low-income workers.

This is a question we hear often. Removing taxes on fuel would reduce the price people pay at the pump. However, taxes are only one part of the final fuel price. International oil prices, shipping costs and other supply costs also affect the price of fuel.Fuel taxes help pay for important public services such as health, education, roads and emergency response. Removing these taxes would mean the Government would need to make up that lost revenue by reducing spending, borrowing more, or increasing other taxes. We also don’t know how long the current global situation will last, so it is important that the Government has the finances to respond if conditions worsen.Lower taxes on fuel can also increase demand for fuel as a result of lower prices. At a time when global fuel supplies remain uncertain, encouraging higher demand could make it more difficult to manage available fuel supplies if the situation worsens.The Government continues to monitor the global situation and consider options to support households and businesses while maintaining sustainable public finances.

The Price Tribunal is an independent body established under the Control of Prices Act. Its role is to set the maximum wholesale and retail prices for petrol, diesel and LPG in the Cook Islands.When setting fuel prices, the Tribunal considers a range of costs, including international fuel prices, import levies, VAT and other allowable costs. Retailers cannot charge more than the maximum prices set by the Tribunal.To read more about the Price Tribunal, visit www.mfem.gov.ck/price-tribunal

Although the Cook Islands does not buy fuel directly from the Middle East, oil is traded on a global market. When conflict threatens global oil supplies or shipping routes, world oil prices often increase.Because the Cook Islands imports all of its fuel, changes in global oil prices eventually flow through to local fuel prices.

The Cook Islands should begin to see lower petrol prices over the coming months as lower global oil prices are reflected in the cost of fuel and other imported goods. While a large and persistent conflict is now less likely, there remains some uncertainty whether a lasting peace agreement will be reached. If the conflict re-escalates, disruptions to oil supply could emerge, with potential flow-on impacts through the supply chain.The Energy Response Technical Working Group will continue to monitor the global situation, our fuel stocks, energy consumption and shipments, and publish regular updates on the MFEM website.