Pacific Economic Bulleting Policy Dialogue: Are Pacific Countries Coping with Surging Oil Prices?

This report was prepared by Theodore Levantis, Christine Groeger and Scott McNamara. The Pacific island countries rely almost exclusively on oil-based fuel for their energy needs. The recent surge in oil prices has exposed the vulnerability of these countries to the vagaries of world oil markets. The implications for import bills and for national incomes are considerable. This paper investigates these implications and explores measures for mitigating the impacts.