Gov't eyes another fuel company

As part of the 100-day plan, the government is considering ending the fuel monopoly and lowering fuel prices by introducing a new fuel company. This move aims to disrupt the existing market structure and bring more affordable prices to consumers. The introduction of competition is expected to drive down costs and benefit the general public.

This plan is an important component of the economic recovery and growth pillar, focusing on implementing strategic initiatives to support Vanuatu's economic recovery and long-term growth. The Ministry of Climate Change has been tasked with the implementation of this plan, ensuring its alignment with sustainable development goals.

In fact, this is not the first time the government has launched initiatives aimed at improving fuel prices. The Vanuatu National Provident Fund (VNPF), in partnership with the government, had signed a Memorandum of Understanding (MOU) with TotalEnergies Fiji to build a fuel depot in Vanuatu to lower fuel prices. This previous attempt highlights the ongoing commitment to addressing fuel costs.

Back in July 2022, the Minister of Finance, Johnny Koanapo, and the VNPF Board traveled to Fiji to sign the agreement. At the time, the Minister called the fuel depot investment a breakthrough that would introduce competition to Vanuatu's fuel industry. He also mentioned that the fuel depot had the potential to be built on VNPF-owned land in Shark Bay, Efate. TotalEnergies Fiji was selected after a bidding process by the VNPF Board. However, this fuel depot plan has not yet materialized, indicating potential challenges in implementation.

In addition to introducing a fuel company under the current government's 100-day plan's economic and growth pillar, the Ministry of Finance and Economic Management (MoFEM) has also been tasked with reviewing the Price Control Act to encourage fair competition, ensure consumer rights, and explore new revenue sources to strengthen government finances. The Ministry of Tourism and Culture will collaborate with trade partners and international airlines to conduct targeted marketing campaigns to raise Vanuatu's profile as a tourist destination, aiming to increase tourist arrivals and stimulate economic activity. Under the plan, a 2024 COM 8 stimulus package will be launched to support short-term recovery and assist affected communities through a cash transfer system, subject to COM approval, providing crucial support to vulnerable populations.