Continued fuel subsidy ‘unsustainable’ for government in the long run if current fuel prices remain high
According to a government press release issued last Thursday, the government “announced that there has been an increase in costs of fuel products predicted in April of this year due to the continuing global geopolitical tensions” experienced in Eastern Europe.
Premier Hon. Dalton Tagelagi said “that to mitigate the sharp rise in the wholesale prices of fuel products and to make it easier for motorists and end-users, the Government, on average, is subsidizing 0.03 cents per litre (cpl) on petrol, 0.07cpl on diesel and 0.27cpl on jet fuel.”
“However, this has incurred an approximate cost to the Government of Niue of $2.6 million in the last four months. It will not be sustainable for the Government of Niue to continue to incur costs at this level.”
Premier Tagelagi says that “another fuel price increase is envisaged in the next few months for petrol, diesel and jet fuel if the current wholesale prices remain high.”