90-Day Economic Emergency, Marshall Islands Energy Supply Threatened by Crisis Timteng

JAKARTA - The Marshall Islands is facing uncertainty over fuel supplies in the next two months due to the conflict in the Middle East.

"Realistically, the situation is still very dynamic and anything can happen. I can't predict the direction," Finance Minister David Paul said, highlighting the energy vulnerability of the remote island nation in an interview with RNZ Pacific as quoted by RIA Novosti, Friday, April 24.

He said his country is now "dependent on the market", because about 90 percent of electricity needs are still supported by diesel generators, making it very vulnerable to oil supply disruptions.

Paul said the latest delivery of fuel, which is expected to last about two months, was purchased at three times the usual price, adding to the government's fiscal pressures.

He also warned suppliers could activate force majeure clauses due to the Middle East conflict, which could potentially hinder the fulfillment of energy supply contracts.

The government is preparing for the worst-case scenario of a total supply stoppage, while exploring support from the United States, including funding assistance and fuel supplies.

The small country has declared a 90-day state of economic emergency as a mitigation measure against the worsening energy crisis.

The policy includes energy savings in the public sector, such as cutting working hours and the obligation to turn off air conditioners, lights, and non-essential office equipment. A number of other Pacific countries have also taken similar steps.

Tuvalu declared a state of emergency, while the Solomon Islands, Fiji, Nauru, Vanuatu, the Cook Islands, and the Federated States of Micronesia imposed restrictions on the use of fuel.