Asian Development Bank grants $40.1 million to curb fuel price surge in Pacific islands

The Asian Development Bank has authorized $40.1 million to assist three Pacific island states—Kiribati, Tonga and Tuvalu—in managing rising fuel expenses linked to the Middle-East war. The Pacific Regional Energy Security Emergency Assistance Project allocates $12.77 million to Kiribati, $15.39 million to Tonga and $11.94 million to Tuvalu. The money will be used to preserve affordable electricity, sustain essential services and reduce the impact of higher living costs on at-risk households.

In Tuvalu, the program will directly aid roughly 6,000 people from low-income families, while in Tonga it will support Tonga Power Limited in maintaining low-cost power supply. All three countries rely on imported fuel and face steep transport costs due to their isolation, so the surge in global fuel and freight prices threatens electricity generation and basic goods. ADB President Masato Kanda noted that Pacific economies have limited capacity to absorb sudden energy cost spikes, which affect budgets, food prices and overall energy security.