Pacific Island nations including Australia and New Zealand are taking steps to try and ease the strain put on island economies due to global impacts of oil prices.

The representatives met in Auckland late last week where they considered and reviewed a memorandum of Understanding for the immediate implementation of a Pacific Petroleum Project.

Fiji was represented at the Auckland forum by the Director of Energy Makareta Sauturaga and those in attendance noted with concern that the availability, accessibility or affordability of petroleum products can have a serious impact on island economies and determined to take a regional approach to address this common concern.

The Officials recommended that the project provides strategic focus on the procurement of the regions core energy needs, including security of supplies, management of strategic petroleum storage, risk management, strengthened domestic pricing policy frameworks and increased private sector participation in the downstream petroleum distribution sector.

They also recommended that the project identifies optimum clusters of countries where pooling of resources will improve negotiation for petroleum supply contracts, leverage purchasing power and minimise the transition costs of procurement activities.

These recommendations to establish the Pacific Petroleum Project will be tabled for consideration and signature by the Forum Economic Ministers or Pacific Energy Ministers at their upcoming meeting.