NEWS

Fuel, LPG Prices To Increase From Tomorrow

The new Fuel and LPG prices come into effect from Thursday, 1 April 2021.
31 Mar 2021 11:44
Fuel, LPG Prices To Increase From Tomorrow
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 the new regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG for April 2021.

The new Fuel and LPG prices come into effect from Thursday, 1 April 2021 and are as follows:

Retail Fuel Prices
● Motor Spirit from $2.13 to $2.24 per litre, an increase of 11 cents per litre;
● Premix from $1.75 to $1.85 per litre, an increase of 10 cents per litre;
● Kerosene from $1.28 to $1.43 per litre, an increase of 15 cents per litre; and
● Diesel from $1.75 to $1.86 per litre, an increase of 11 cents per litre.

Retail LPG Prices
● 4.5kg Cylinder from $13.53 to $14.17, an increase of 64 cents per 4.5kg Cylinder;
● 12kg Cylinder from $36.07 to $37.79, an increase of $1.72 per 12kg Cylinder;
● 13kg Cylinder from $39.08 to $40.94, an increase of $1.86 per 13kg Cylinder;
● Bulk Gas from $2.51 to $2.64, an increase of 13 cents per kg; and
● Autogas from $1.68 to $1.77, an increase of 9 cents per litre.

The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such, the April 2021 Fuel and LPG regulated prices are based on the importations made in February 2021 by the Fuel Companies 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 April 2021 are due to unfavourable movements noted in the international prices for Motor Spirit, Premix, Kerosene and Diesel and unfavourable movements in the international freight rates which were supported by strengthening of the USD dollar against the Fijian dollar based on February 2021 imports.

Crude Oil Market

The crude oil prices surged by more than 13% to their highest monthly average since January 2020, hitting 13-month highs due to following reasons:
1. Severe winter weather triggered a supply disruption in United States, causing a sharp decline in oil production in the first half of February 2021.
2. Optimistic assumptions on tightening supply and demand fundamentals. The Declaration of Cooperation producers continued to show strong conformity levels to their production adjustments, and Saudi Arabia unilaterally decided to voluntarily adjust its production by 1 million barrels per day in February and March 2021.

Crude oil futures prices also extended their rally in February 2021 in anticipation of a rapid recovery to pre-COVID-19 normality. The improving COVID-19 situation in some of the countries, along with decline in infection cases in major economies and encouraged signs of progress on vaccination rollouts, provided further support. The crude oil prices extended their upward momentum over the month on expectation of a constrained supply as a result of extreme cold in the near term, after a major energy crisis in Texas, United States temporarily disrupted supply of 4 million barrels per day for US oil production. These global economic factors in February 2021 contributed to the change in the local Fijian prices for refined oil products which will be effective from 1 April 2021.

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 April 2021 in Fiji are due to unfavourable movement in Saudi Aramco Butane CP and favourable movement in international freight rate from which were greater than the gains from weakening of the US dollar against the FJ dollar based on February 2021 imports.

The Saudi Aramco’s CPs were higher in February 2021 and were driven by healthy heating demand in North Asia amid a severe winter, which was expected to remain harsh in Japan’s northern areas through February, as well as robust requirements from Chinese PDH plants which are operating at high rates to capture healthy margins.

Higher butane CPs in February reflected increased demand for gas because of much colder-than-normal temperatures throughout most of the Northern Hemisphere region. Price effects were amplified because the rise in demand occurred amid a drop in gas production due to well freeze-offs. These international market forces impacted the price of LPG products in the Fijian market.

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. FCCC will conduct the next Fuel and LPG price review on 1 June 2021.



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