The fuel crisis
ON December 8, 1973 The Fiji Times front page and its editorial was on the increase in the price of fuel and its impact on the transport industry in the country.
The report stated Air Pacific may have to increase its fares to cover the big increases in the cost of the aviation fuel.
The prospect of the steep increase in fuel came after a series of setbacks, which plunged the airline company into a $398,000 loss in its financial year of 1972.
The general manager of Air Pacific at that time, Captain Ronald Duffield, said it was budgeting for another loss in its business year, which would end the following March.
The chairman of the airline, Captain Philip Howson of Qantas, said a combination of factors caused the loss.
He said these included strikes, the disruption by Hurricane Bebe and the airline’s inability to make full use of its jets because of delays in completing new runways in Tonga and the Gilbert Islands.
Air Pacific announced the loss after accounts for the year ending the previous March went before a board meeting in Suva.
Devastating effect
The airline made a $134,711 profit the previous year and twice as much in the year before that.
Capt Howson said strikes such as the ones which closed Nadi Airport had the most devastating effect on passenger figures because people avoided places they were not sure they could reach or leave.
Asked how the world fuel prices was affecting Air Pacific, Capt Duffield said it was not yet affecting scheduled services.
But fuel costs had risen drastically, he said,
Air Pacific was considering whether it should adjust its fares to meet the extra costs.
“No firm decision has been made at this point of time,” Capt Duffield said,
The report sated that the fuel crisis followed cuts in production by some Arab nations as part of their anti-Israel policy.
Then prime minister the late Ratu Sir Kamisese Mara then appointed a fuel committee of ministers under the chairmanship of the deputy PM, Ratu Penaia Ganilau.
A government official said there were concerns about the amount of fuel in use for the generator of electricity.
“There is still plenty of room for saving in the use of electricity and in particular, illuminated advertisements and the use of lighting at night,” he said.
The Government called on users of electricity to use electricity wisely and to conserve its use every day.
“Please do not abuse the use of electricity and be mindful of the increase in prices of fuel in the market,” it added.
Early in the week the prime minister called for a 20 per cent cut in fuel use and petroleum distributions as cuts to retailers had begun.
The fuel shortage was expected to affect some passenger liners visiting our shores.
Fiji shipping agents said the passenger liners were thinking twice about sailing because of the crisis.
Shipping liners were to reduce sailing speeds to conserve fuel, resulting in bypassing some countries.
One of these cruise liners, Himalaya, was to arrive in Suva, Tonga and Noumea on her return trip to Auckland but planned to bypass Noumea to save fuel.