Page 39 - Islands Business September 2023

Kiribati
KIRIBATI’S FUEL CRISIS

PART OF A FINANCIAL CRISIS?

By Rimon Rimon

Residents of Kiribati’s most populous island, South Tarawa,
were welcomed to August by a fuel crisis that persisted for
six days, disrupting the capital’s ‘business-as-usual’ mode and
affecting the daily activities of the more than 60,000 people
who dwell on the fuel-reliant atoll.
The public, mainly owners of private cars and motorbikes
and users of public transportation, quickly took to social
media expressing their discontent over the sudden disruption
of fuel service, in particular, benzene.
Fuel outlets across the island began to ration their
remaining fuel supply to the public, causing a surge of people
to flock to their nearest petrol stations. Images of cars and
motorbikes queuing for more than three kilometres went viral
on Facebook.
Chaos followed as tussles broke out among the crowds at
the petrol stations, as the fuel shortage entered its third
consecutive day (Sunday 6 August) without any official
communication or explanation from the authorities.
The state-owned enterprise entrusted to provide fuel In addition to cars queuing at petrol stations, people also lined up fuel depots to
services to the nation of more than 200,000 people, fetch fuel for their vehicles parked at home. Photo: Simon Lono Iotia/Facebook
Kiribati Oil Company Ltd (KOIL), was tight lipped about the
shortage over the weekend. The Office of Te Beretitenti experienced in this past weekend. This problem is caused by
(the President’s Office) who typically intervenes in times of an ongoing reconciliation of KOIL’s debt with its international
national crisis, was also mute. supplier. It is our resolve that once this reconciliation is
In the absence of any official communication – three days settled, fuel supply will be back to normal.”
into the crisis – public outcry intensified as people began The statement from KOIL offered no further details about
to point fingers and demand answers from the concerned the reconciliation and the debt, despite numerous attempts
authorities. Fueling the outcry further was the fact that it by Kiribati Newstar seeking further information from both the
was a long weekend. Thousands of families’ plans to celebrate President’s office and KOIL.
National Youth and Children’s holiday were scrapped due to Hours later, KOIL posted its own announcement on social
the fuel shortage. media claiming that the reconciliation has been resolved
“I was not prepared at all for this sudden shortage of fuel… and that the fuel tanker will arrive the following morning,
experienced during this long weekend and it is with regret Thursday 10 August – which it did.
that I had to cancel all my plans to conserve the fuel I have While the fuel crisis has been resolved for now, Kiribati
left in my car for emergency purposes,” Tianeti Ioane, a Opposition Leader, Tessie Lambourne says the matter is a sign
former parliamentarian posted on his Facebook page. that the Government of Kiribati is going through a greater
On 8 Aug, the fifth consecutive day into the crisis and still financial problem.
without any official communication, the local independent “If you observe the trend of the challenges that the
newspaper, Kiribati Newstar broke the news that the cause of people are experiencing today, it all boils down to money,
the abrupt shortage in benzene was due to a dispute between or lack thereof. Because I cannot stress enough that this
KOIL and its international supplier, over an outstanding government’s budget is operating on a deficit – because they
payment on KOIL’s part. are spending a lot of money and making very little returns – if
Kiribati Newstar quoted sources from the Ministry not, none,” Lambourne exclaimed.
of Infrastructure and Sustainable Energy – the Ministry Lambourne alluded to the more than one year-long
overlooking the mandate of KOIL – as saying that a fuel tanker shortage in pharmaceutical supplies, as well as the ongoing
from the international supplier was “drifting” somewhere energy crisis, which has seen the nation’s utility company
near Tarawa atoll, awaiting a resolution to the dispute before (Public Utilities Board) amassing mounting debts since 2020,
it could moor into port and discharge the fuel ration for operating diesel generators that have outlived their life span
August. while new generators donated by China and New Zealand are
On 9 Aug, day six into the crisis, the President’s Office unable to meet the required energy needs of people in the
finally made an announcement on behalf of KOIL: “We wish capital.
to apologise for the unexpected disruption in fuel supply She intends to raise the issues in Parliament.

Islands Business, September 2023 39