A joint-fuel buying initiative for small companies across the region aims to lower fuel costs.

According to Fiji's daily online newspaper, The Fiji Times Online, the Pacific Power Association (PPA) and the Pacific Islands Forum Secretariat are planning the initiative through which companies can save money by buying fuel together in large quantities.

PPA's executive director, Tony Neil, said that a new partnership with the Australian-based Macquarie Bank will produce a fuel plan based on actual consumption that will be presented to forum leaders, as reported by Radio New Zealand International. It is estimated that fuel costs eat up 70 to 75 per cent of companies' operating budgets

The plan will be presented at next month's meeting.