Fuel Down But Costs Up, Says Taxi Advocate

‘Things we need to understand in times of crisis are our expenses’ - Ashwin Lal
06 Jun 2020 15:08
Fuel Down But Costs Up, Says Taxi Advocate
An attendant filling fuel to a taxi.

Fuel prices might be down. But the prices of tyres and car parts are up, says Ashwin Lal. And business is down, he adds.

Mr Lal is the Fiji Taxi Association’s General Secretary. He was explaining why the taxi industry does not think it will be possible to reduce fares.

“Few things we need to understand though in times of crisis are our expenses,” said Mr Lal.

He said the price of tyres and motor parts have shot up and that had been considered when reviewing taxi prices.

“Also considering that most taxi drivers aren’t as busy as they usually are,” he said.

Though Mr Lal is grateful that fuel and LPG prices have dropped, he says: “We cannot expect a plunge in fare just because there was a plunge in fuel prices.”

Meanwhile, Mr Lal said he was working on a proposal and hopefully to have talks with the Minister of Transport in subsidising for those living with disabilities.

“Just like the buses give a subsidised fare to those living with disabilities; we would also like to start implementing this as well.”

More than 60,000 people will benefit from this taxi fare concession should this proposal come through.

New Prices

Fijian Competition and Consumer Commission (FCCC) chief executive officer (CEO), Joel Abraham said price for unleaded fuel has dropped by 14 cents per litre from $1.80 to $1.66 a litre while diesel price has dropped from $1.67 to $1.54 per litre.

In a (FCCC) media release says the fuel and LPG price review implemented by FCCC follows a one-month lag period. As such the May 2020 fuel and LPG regulated prices are based on the importations made in March 2020 by the oil companies and LPG companies in Fiji.

The fuel price in Fiji is impacted by the movement in Means of Platts Singapore (MOPS), the international freight rate and the exchange rate.

“The reduction in local fuel price for May 2020 are due to favourable movement in the international prices for motor spirit, premix, kerosene and diesel; unfavourable movement in the international freight rates; and strengthening of the USD dollar against the Fijian dollar based on March 2020 imports,” the statement said.

Edited by Karalaini Waqanidrola


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