Fuel supply to Vanuatu remains stable amid global oil market uncertainty

March 10, 2026 10:19 pm | Posted in Business News | Share now TwitterFacebook

The government has assured it is closely monitoring the situation in the Middle East, where the US/Israel conflict with Iran has lead to the closure of the Strait of Hormuz, a key oil supply route for the Asia-Pacific region.

About 80% of the region’s oil passes through this strait, which has been impassable since March 2, 2026, halting oil exports from the Gulf of Arabia.

The government, through the Ministry of Climate Change and Energy, has engaged with Pacific Energy, Vanuatu’s primary fuel importer and supplier, to assess potential impacts on national fuel supply.

Pacific Energy has confirmed that current stocks are sufficient to cover usual consumption, according to a statement from the government.

The company also confirmed that its supply program, based on a three-month rolling forecast, is secured, and no shortages are anticipated in the foreseeable future.

However, the closure of the Strait of Hormuz and attacks on oil production and transport facilities have led to increased oil prices and freight rates on the international market. The duration and level of these increases are currently unpredictable.

The government assured it will maintain regular engagement with fuel suppliers and stakeholders to ensure continuity of fuel supply.

“The public is advised that there is no current need for concern regarding fuel availability. Unnecessary stockpiling is discouraged, as supply arrangements remain stable,” according to a statement.

“The Government will provide updates should global developments significantly affect fuel supply or prices.”