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Koya Explains Reasons For Hike In Fuel Prices

Koya Explains Reasons For Hike In Fuel Prices
(From left) Fijian Competition and Consumer Commission chief executive officer Joel Abraham, Minister for Industry, Trade, Tourism, Lands and Mineral Resources Faiyaz Koya and Ministry of Industry, Trade and Tourism permanent secretary Shaheen Ali at the announcement of the new fuel and LPG prices on January 13, 2018. Photo: Monica Aguilar
January 14
10:38 2018

The increase in the prices of fuel and LPG were caused by off shore price movements said the Minister of Industry, Trade, Tourism, Lands and Mineral Resources Faiyaz Koya yesterday.

According to Mr Koya, the new prices of unleaded petrol, premix, kerosene, diesel and LPG products will come into effect on Monday January 15, 2016.

Motorists will be paying a new price of $2.03 (old price $1.89) for motor spirit and $1.89 for premix.

The price of gas sold in cylinders will also cost more.

A 4.5kg cylinder used to cost $12.58 but will increase to $14.43 while a 12 kg cylinder has increased to $38.48 from $33.55.   

The new prices were determined by the latest review by the Fijian Competition and Consumer Commission.

He adds that the new petroleum prices were mainly determined by unfavourable movement in the international prices for all petroleum products experienced in the last quarter.

“Crude oil prices traded at the highest levels in more than two years for the months of November and early December 2017.

“This was triggered by the OPEC (Organisation of the Petroleum Exporting Countries) and non-OPEC producing countries continued to conform with oil production cuts which is extended to the end of this year and the Northern Hemisphere countries approaching winter,” he said.

The global demand from China and India supported the increase in crude oil prices which will project a continuous positive growth rates in the future.

Therefore the high demand for crude oil and production cuts has also led to the increase in prices.

Mr Koya said the new LPG hike is significantly impacted by the increase in the international butane prices based on the Saudi Aramco Contract prices.

“The prices were affected by the strengthening of the US dollar that has led to the international freight rates to increase, resulting in price increase for all LPG products.

“Fiji is directly impacted by the world market prices for both refined oils and LPG,” he said.

Fijian Competition and Consumer Commission chief executive officer Joel Abraham said his team has been deployed to ensure that everyone complies with the new price changes.

Feedback:  monica.aguilar@fijisun.com.fj

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