Vanuatu PM Jotham Napat says the Council of Ministers (Cabinet) has approved a six-month VT766 million support package (US$6.4m) targeting electricity, transport and agriculture to mitigate the impact of the Iran war. 1 May 2026 Photo: Screengrab / Facebook/Ministry of the Prime Minister - Vanuatu
Vanuatu's prime minister has announced new fuel support subsidies as the conflict in Iran drags on.
In a national address on Friday, Jotham Napat said the Council of Ministers (Cabinet) had approved a six-month VT766 million support package (US$6.4m) targeting electricity, transport and agriculture to mitigate the impact of the war.
Napat said this was calculated based on the cost increases directly related to the global fuel crisis due to the closure of the Strait of Hormuz.
The aviation sector received an allocation of VT100m, power utility providers got VT109m, public transport providers received VT150m, with close to VT200m going to the agriculture sector.
The one-off payment of VT150m will be distributed to registered public transport operators, including around 1200 buses, 800 common vehicles, 600 taxis, and 700 public boats, to support three months of operations, the Vanuatu Daily Post reported.
Napat said the funds will be distributed directly to registered companies and business owners operating in the target sectors.
He said the aim is to keep the costs for consumers as low as possible while the war in Iran continues.
On fuel supply, he said the government continues to monitor the situation and urged people not to panic buy as it would just make a bad situation worse.
Global fuel markets have remained under pressure since the closure of the Strait of Hormuz in late February, impacting both price and supply across the Pacific, the Cook Islands governemnt says.
The Marshall Islands government declared a 90-day state of economic emergency at the beginning of the month due to the conflict in the Middle East between Israel, the United States and Iran.
A state of emergency has been declared on Funafati Island for two weeks in light of risks to the fuel and electricity supply. Audio
Northern Marianas' delegate to the US Congress says the tentative ceasefire between the United States and Iran highlights how global conflicts quickly ripple across small island economies.
