FIJI NEWS | NATION

New Fuel And LPG Prices For May 2021

The Fijian Competition and Consumer Commission (FCCC) has determined the new  regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG for May 2021  which are to come into effect
30 Apr 2021 16:15
New Fuel And LPG Prices For May 2021

The Fijian Competition and Consumer Commission (FCCC) has determined the new  regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG for May 2021  which are to come into effect from Saturday, 1 May 2021.

They are as follows:

 

Retail Fuel Prices

Motor Spirit from $2.24 to $2.35 per litre, an increase of 11 cents per litre;

Premix from $1.85 to $1.96 per litre, an increase of 11 cents per litre;

Kerosene at $1.43, remains unchanged; and

Diesel from $1.86 to $1.94 per litre, an increase of 8 cents per litre.

 

Retail LPG Prices

4.5kg Cylinder from $14.17 to $14.41, an increase of 24 cents per 4.5kg Cylinder;

12kg Cylinder from $37.79 to $38.43, an increase of 64 cents per 12kg Cylinder;

13kg Cylinder from $40.94 to $41.64, an increase of 70 cents per 13kg Cylinder;

Bulk Gas from $2.64 to $2.70, an increase of 6 cents per kg; and

Autogas from $1.77 to $1.81, an increase of 4 cents per litre.

 

The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such, the May 2021 Fuel and LPG regulated prices are based on the importations made  in March 2021 by the 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 May 2021 are due to unfavourable movements noted in the international prices  for Motor Spirit, Premix, Kerosene and Diesel and unfavourable movement in the  international freight rates which were greater than the gains from the slight weakening of  the USD dollar against the Fijian dollar based on March 2021 imports.

 

Crude Oil Market 

The crude oil prices increased for the fifth consecutive month in March 2021 due to the  following reasons: 

a) The global oil demand rose optimistically, however global oil supply continued to be restrained in March 2021.

b) The physical crude oil market remained weak in March 2021 due to the high availability of crude volumes for March and April loadings, however, there was soft crude demand from refiners due to spring refinery maintenance in the Asia region.

c) The slow recovery of US refinery operations continued in March 2021 from February  2021 outages, continued: and 

d) There was a partly weak demand from the Europe region due to the reinstatement of mobility restrictions and local lockdowns.

The blockage of the Suez Canal by the large container ship, Ever Given, disrupted the  shipment of crude oil products for several days but had a limited impact on the physical  market as supplies remained plentiful.

These global economic factors in March 2021  contributed to the change in the local Fijian prices for refined oil products which will be  effective from 1 May 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 May 2021 in Fiji are  due to unfavourable movement in Saudi Aramco Butane CP and international freight  rates.

Unfavourable movements in butane price and international freight rates were  further supported by the strengthening of the US dollar against the FJ dollar based on  March 2021 imports. 

The March 2021 CP is the eighth consecutive monthly increase for Saudi Aramco Butane  CP.

The higher March 2021 CPs were due to Saudi Aramco’s announcement on  acceptances of term LPG nominations for March loadings, with trade sources revealing  mixed views on whether there were cancellations or delays and the volumes to be  exported. 

Saudi Aramco’s LPG exports across the year were estimated at around 7.9 million to 8.1  million metric tonnes.

Platts stated that mixed views on March acceptances could also  be attributed to lifters and Saudi Aramco having agreed in advance on the volumes, even  as acceptances of February nominations saw Aramco cancelling cargoes nominated by 

seven to eight lifters, following Saudi Arabia’s decision at the January 5 OPEC+ meeting  to cut oil output by 1 million b/d in both February and March. 

Furthermore, US LPG cargoes arriving in late February and early March were anticipated to have likely delays due to disruptions at refineries and terminals in the US Gulf Coast  after a polar vortex struck the area and ice storms severely disrupted the USGC terminal  programs.

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. 

 

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.



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