MITIGATION measures are set to roll out in Vanuatu amid the ongoing conflict in Iran that has impacted global fuel prices. Vanuatu’s government has introduced a substantial financial support package.
Prime Minister Jotham Napat announced last Friday that the Cabinet has approved a VUV766 million ($USD6.4 million) six-month subsidy plan to help counter rising costs for electricity, transport, and agriculture, which have been directly affected by the closure of the Strait of Hormuz.
How the funds will be distributed:
- Agriculture sector: Close to VUV200 million
- Public transport providers: VUV150 million (a one-off payment for registered operators, covering three months of operations for an estimated 1200 buses, 800 common vehicles, 600 taxis, and 700 public boats)
- Power utility providers: VUV109 million
- Aviation sector: VUV100 million
Napat said funds would go directly to registered companies and business owners in these sectors, with the goal of keeping consumer costs as low as possible while the war continues. He also urged the public not to panic-buy fuel, warning that doing so would only worsen the situation. The government continues to monitor fuel supply closely.
Source: RNZ
