SUNBIZ

Prices Of Unleaded Fuel, Premix And Gas Will Decrease From Sunday

The new prices come into effect from Sunday, 1 November 2020.
30 Oct 2020 13:24
Prices Of Unleaded Fuel, Premix And Gas Will Decrease From Sunday
James Robin fill up fuel for a cutomer at a Total Service Station iin Suva . Photo: Ronald Kumar.

The Fijian Competition and Consumer Commission (FCCC) has determined new regulated prices for Unleaded Petrol, Premix, Kerosene, Diesel and LPG for November 2020.

The new prices come into effect from Sunday, 1 November 2020.

Retail Fuel Prices
• Motor Spirit from $1.98 to $1.92 per litre, a decrease of 6 cents per litre;
• Premix from $1.61 to $1.55 per litre, a decrease of 6 cents per litre;
• Kerosene from $1.05 to $1.00 per litre, a decrease of 5 cents per litre; and
• Diesel from $1.63 to $1.54 per litre, a decrease of 9 cents per litre.

Retail LPG Prices
• 4.5kg Cylinder from $11.66 to $11.49, a decrease of 17 cents per 4.5kg
Cylinder;
• 12kg Cylinder from $31.09 to $30.63, a decrease of 46 cents per 12kg Cylinder;
• 13kg Cylinder from $33.69 to $33.18, a decrease of 51 cents per 13kg Cylinder;
• Bulk Gas from $2.15 to $2.14, a decrease of 1 cent per kg; and
• Autogas price remains the same as $1.44 per litre.

The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such the November 2020 Fuel and LPG regulated prices are based on the importations made in September 2020 by Fuel and LPG Companies in Fiji.

Fuel Price Change Reasons
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 fluctuations noted in Local Fuel prices for November 2020 are due to favourable movements noted in the international prices for Motor Spirit, Premix, Kerosene and Diesel; unfavourable movement in the international freight rates; and a slight strengthening of the USD dollar against the Fijian dollar based on September 2020 imports.

Crude oil prices averaged sharply lower in September 2020, after four consecutive months of gains.

This decline was the result of several factors, including softening recovery of physical crude market fundamentals, in addition to the bearish sentiment
in the crude oil market amid the continuing increase of the COVID-19 new cases globally, and raising concerns about the global oil demand outlook.

Crude oil prices came under pressure in September 2020 as market sentiment deteriorated on growing concerns about signs of slowing global oil demand recovery, which was exacerbated by spikes in COVID-19 infections in several regions, including India, the US and many European countries, which could prompt tighter lockdown measures and more limited mobility.

The main forecasters revised down their global oil demand growth for this year.

A softening recovery of global oil demand and maintaining global oil stocks at high levels kept all crude oil markets in contango during September 2020.

These global economic factors in August 2020 contributed to the slight change in the local Fijian prices for refined oil products which will be effective from 1 November 2020.

LPG Price Change Reasons
The LPG price in Fiji is impacted by the movement in Saudi Aramco Butane Contract Price (CP), the international freight rate and the exchange rate.

The major reasons for the movement in prices for all LPG products in November 2020 are due to the changes noted in butane contract price, strengthening of USD against Fijian dollar while the international freight remained unchanged.

Although the butane contract price and USD strengthened, however the decrease noted in November 2020 LPG price is due to change in buying pattern by the suppliers.

The traders gave a wide range of expectations for the Saudi Aramco September butane CPs of around or above the August CPs, $345 for butane, on concerns about the impact of Hurricane Laura on oil, gas and refining production in the USGC.

However, Asia’s LPG market was more at ease on 28 August after worries of over production disruptions at NGLs facilities, Texas dissipated as Hurricane Laura followed an eastern track, sparing the region torrential rain and catastrophic wind.

Hurricane Laura made landfall at the border of Texas and Louisiana forcing several LPG export terminals and offshore production platforms to shut down operations.

The latest increase in Saudi CP came as demand was seen recovering in India and China while North East Asia is facing a colder -than -average winter over December to February, which is expected to boost demand for heating.

Fiji is directly impacted by the world market prices for both refined oils and LPG. As such, any changes to the
world market prices will be reflected in Fuel and LPG prices in Fiji.

The FCCC will conduct the next Fuel and LPG price review on 1 December 2020.

For more information/details on this please contact the FCCC at their Facebook page: https://www.facebook.com/FijianCCC/, on their website: www.fccc.gov.fj or call 8921991.

Feedback: maraia.vula@fijisun.com.fj



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