Port Vila, Vanuatu - April 17th, 2026 — The Government of Vanuatu advises the public of an imminent increase in domestic fuel prices due to significant changes in the global oil market.
Effective Saturday, 18 April 2026, the retail price of petrol will increase from 166 Vatu per litre to 223 Vatu per litre. The price of diesel will increase from 155 Vatu per litre to 254 Vatu per litre, with the adjustment expected to take effect early next week.
Prime Minister Hon. Jotham Napat said the increases are a direct consequence of ongoing geopolitical tensions and conflict in the Middle East, particularly involving the United States, Israel, and Iran.
“These developments are beyond the control of the Government of Vanuatu and are affecting countries worldwide, not Vanuatu alone,” Prime Minister Napat said. “As a small island developing state dependent on imported fuel for electricity and transport, we remain highly vulnerable to these external shocks. The landing cost of fuel at our shores is set by international market forces outside our influence.”
To cushion the impact on the economy and livelihoods, the Government will implement a temporary support mechanism over six months. Assistance will be targeted at critical sectors: electricity for utility company (UNELCO), sea transport, air transport, public land transport, and agriculture.
The Government has held discussions with UNELCO to ensure electricity bills do not increase.
“With the excise refund approved by the Council of Ministers yesterday, households and businesses will not see higher electricity bills as a result of this fuel price adjustment,” he said. “Our priority is to protect essential services and limit cost increases being passed on to consumers through higher prices for goods and services.”
The Government also confirms that it has held discussions with the Port Vila Land Transport Authority (PLTA) to ensure that with the cash subsidy to transport owners, bus fares and other costs will also not go up.
Due to the scale of the increase, the Government acknowledged it will not be able to support all fuel consumers. The targeted approach focuses on sectors essential to the functioning of the economy and service delivery.
Government strongly discourages stockpiling of fuel for future use or resale at inflated prices and will work with fuel suppliers and relevant authorities to monitor supply and ensure fair access for all.
Citizens, particularly private vehicle owners, are urged to adopt fuel-efficient practices. Reducing unnecessary travel, maintaining vehicles properly, and carpooling where possible will help mitigate the impact of rising costs.
“The factors driving these price increases are outside national control,” Prime Minister Napat said. “But every effort is being made to manage their impact responsibly and equitably. Government will closely monitor developments in the Middle East and global fuel markets over the next three months.”