The Solomon Islands Chamber of Commerce and Industry (SICCI) organized a roundtable discussion attended by representatives from the SICCI manufacturing sector, government ministries, and stakeholders from the energy and fuel industries. The purpose of the discussion was to share information on fuel prices and their expected changes for 2023. The discussion also assessed the impact of government tax exemptions on fuel that ended on December 31, 2022, and identified potential challenges and opportunities in the energy and fuel industry in 2023.

During the discussion, a representative from Solomon Power presented that the current main fuel suppliers are Markworth and South Pacific Oil Limited and are expected to acquire a new supplier of fuel by August 2023, with a potential reduction in tariff rates. The reduction in tariff charges from June to August 2022 is around $0.22, and from September to December 2022, the average monthly reduction of tariff charges is around $0.32. However, if Solomon Power fails to secure a fuel source, there are currently no alternatives available.

Solomon Power has forecasted to pay $95 to $205 USD per barrel of fuel in 2023, which will be charged by South Pacific Oil (SPO) to Solomon Power. This translates into at around SBD $10.81 per litre, slightly lower compared to last year. Solomon Power has seen a drop in fuel prices by an average of $9 in the first three months of 2023 and expects a continued trend of fuel prices going down, resulting in a decrease in tariff charges.

The Ministry of Mines and Energy representative shared that the review of fuel prices is done every month and also triannually, with the main expense leading to an increase in fuel price being crude oil. The main factor affecting an increase in fuel costs is the exchange rate, taking into account that the Solomon dollar is weaker compared to the US dollar.

Solomon Power representative has further shared that several renewable energy projects are in progress, including the ADB-funded hybrid power extensions at Henderson and Tanagai, which are expected to come online in the first quarter of 2024. Solomon Power also has a 200-kilowatt rooftop solar installation at their Ranadi Head Office, expected to be completed by the second quarter of 2024 as well. In addition, Solomon Power has collaborated with the SDA Church to acquire land in Betikama for the construction of a solar power plant, expected to have a capacity of 5 to 10 megawatts.

The participants discussed potential solutions and strategies to address challenges and capitalize on opportunities in the energy and fuel industry in 2023. The roundtable discussion provided useful insights into fuel prices and the energy outlook for 2023 in the Solomon Islands.

With one of the highest costs of electricity in the region, SICCI has been advocating for affordable and sustainable cost of energy on behalf of its members. The high cost of electricity is on one the top challenges to business operations in Honiara. 

SICCI Chairlady, Qila Tuhanuku expressed sincere gratitude to all those who attended the Energy and Fuel Outlook 2023 discussion. She stated that the event provided a valuable opportunity for government ministries, SICCI, and stakeholders to come together and discuss the current energy and fuel situation in the Solomon Islands, as well as the future outlook for businesses and the economy. SICCI looks forward to continued collaboration in the future to ensure a sustainable and prosperous energy and fuel sector for the Solomon Islands.