NEWS

Increase In Fuel And LPG Prices

The Minister for Industry, Trade and Tourism Hon. Faiyaz Siddiq Koya today announced new prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of
14 Jan 2017 16:47
Increase In Fuel And LPG Prices
Fuel

The Minister for Industry, Trade and Tourism Hon. Faiyaz Siddiq Koya today announced new prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of prices by the Fiji Commerce Commission. There is an increase in Fuel and LPG prices.

 

The increase in refined petroleum product prices for the review period of October – December 2016 are attributed:
(i)         declining global inventory levels;

(ii)        higher demands for refined petroleum for this quarter; and

(iii)       strengthening of the trading currency (US dollar).

 

The new prices for Fuel and LPG will come into effect from 15 January 2017.

 

  1. FUEL

Furthermore, the fluctuations in the international prices, freight rates and exchange rates have been considered in the review. The resulting effect of the product movements has seen the following changes in fuel prices for the first quarter of 2017 for the Fijian market:

 Table 1: Summary of Fuel Price Changes per Litre
Product Current Prices

FJ ($)

Revised  Prices

FJ ($)*

Price Change

FJ ($)

Price Change

(%)

Motor Spirit $1.72 $1.83 $0.11 6.40%
Premix $1.56 $1.67 $0.11 7.05%
Kerosene $1.18 $1.26 $0.08 6.78%
Diesel $1.40 $1.47 $0.07 5.00%

*Prices will vary outside the cities in Viti Levu beyond 3km from any public road.

 

Fiji being a price taker, cannot control fluctuations in global fuel markets, but through sensible and consist policy decisions has managed to ensure price stability. Therefore, Fuel and LPG prices are reviewed every quarter, as opposed to every month, to maintain price stability. This enables all Fijians to plan their consumption better and will remove shocks as a result of continuous price fluctuations.

 

Even when taking these quarterly changes into account, fuel prices are markedly lower than prices in the same period last year.

 

Current prices when compared to the same period last year shows considerably savings;

 

  1. i) Motor Spirit: -$0.07 (2017: $1.83, 2016: $1.90);
  2. ii) Premix: -$0.11 (2017: $1.67, 2016: $1.78);

iii)            Kerosene: -$0.09 (2017: $1.26, 2016: $1.35); and

  1. iv) Diesel: -$0.03 (2017: $1.47, 2013: $1.50).

 

 

Table 2: Petroleum Product Retail Price from Q1 2016 to Q1 2017
Date of Price Change Motor Spirit Premix Kerosene Diesoline
Q1 – 15.01.2016 $1.90 $1.78 $1.35 $1.50
Q2 – 15.04.2016 $1.67 $1.52 $1.00 $1.24
Q3 – 15.07.2016 $1.77 $1.61 $1.16 $1.39
Q4 – 15.10.2016 $1.72 $1.56 $1.18 $1.40
Q1 – 15.01.2017 $1.83 $1.67 $1.26 $1.47
($) Change -$0.07 -$0.11 -$0.09 -$0.03
(%) Change -3.68% -6.18% -6.67% -2.00%

 

  1. LPG Prices

 

The review for first quarter 2017 noted increases in prices of LPG products due to the following reasons:

(i)            Increase in the published prices (Saudi Armaco Contract Prices) and

(ii)            Strengthening of the US dollar against the Fijian Dollar.

(iii)          With international freight rates remain constant.

 

The resulting effect of movements has seen the following changes in LPG prices for the first quarter of 2017. The LPG prices for the Fijian market are as follows:

 

Table 3: LPG Price Changes 
Product Type Current Prices

FJ ($)

Revised Prices

FJ ($)**

Price Change

FJ ($)

Price Change

          FJ (%)

4.5KG Cylinder $10.77 $12.04 $1.27 11.79%
12KG Cylinder $28.73 $32.11 $3.38 11.75%
Bulk (KG) $2.03 $2.27 $0.24 11.96%
Auto Gas (Litre) $1.36 $1.52 $0.16 11.76%

**Prices will vary outside Viti Levu and Vanua Levu

 

The changes in prices (Table 3) are a result of increases in the published Prices for the LPG cargos discharged in October, November and December 2016.

 

The published prices increased from the previous quarter, averaged at USD306.67/tonne to USD410/tonne in the current quarter. The movement in the exchange rate of the Fijian dollar against the US dollar, and the movement in the international freight rates handling charges attributed to the price changes.

 

The price changes in Fuel and LPG are beyond our control given that Fiji is a price taker to world market prices for both refined oils and butane.

 

Fuel is a significant contributor to carbon emission and climate change. The impact of climate change poses a larger threat to small island developing states, like Fiji, as was seen with Cyclone Winston and the devastation caused. Therefore, we need to assist and lead the fight to combat climate change by being responsible in our use of fuel, amongst other things.

 

 

Honourable Faiyaz Siddiq Koya

Minister for Industry, Trade and Tourism

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