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Fuel Prices To Drop By Tuesday – 1st February

The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such the February 2022 Fuel and LPG prices are based on the imports made by Fuel and LPG Companies in December 2021.
28 Jan 2022 18:38
Fuel Prices To Drop By Tuesday – 1st February

The Fijian Competition and Consumer Commission (FCCC) has determined the new regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products for February 2022.

The new Fuel and LPG prices comes into effect from Tuesday, 1 February 2022 and are as follows:

Retail Fuel Prices
• Motor Spirit from $2.74 to $2.61 per litre, a decrease of 13 cents per litre;

• Premix from $2.34 to $2.22 per litre, a decrease of 12 cents per litre;

• Kerosene from $1.82 to $1.69 per litre, a decrease of 13 cents per litre; and

• Diesel from $2.34 to $2.18 per litre, a decrease of 16 cents per litre.

 

Retail LPG Prices
• 4.5kg Cylinder from $17.34 to $16.87, a decrease of 47 cents per 4.5kg Cylinder;

• 12kg Cylinder from $46.24 to $44.98, a decrease of $1.26 per 12kg Cylinder;

• Bulk Gas* from $3.27 to $3.18, a decrease of 9 cents per kg; and

• Autogas from $2.19 to $2.13, a decrease of 6 cents per litre.

 

*Note: The price for Bulk Gas is the Wholesale Vat Exclusive Price (VEP), while all other prices for Fuel and LPG products stated above is the Retail Vat Inclusive Price (VIP).

The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such the February 2022 Fuel and LPG prices are based on the imports made by Fuel and LPG Companies in December 2021.

FCCC has used the Saudi Aramco Butane Contract Price (CP) for January 2022 to determine the LPG price for February 2022.

 

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 the local fuel prices for February 2022 are due to favourable movement noted in international refined product (Motor Spirit, Premix, Kerosene and Diesel) prices and unfavourable movement in the international freight rate for all refined, while the exchange rate slightly strengthened based on December 2021 imports.

 

In February 2022, the local fuel prices for Motor Spirit, Premix, Kerosene and Diesel will decrease as the gains noted from favourable movement of international refined oil price outweighed the losses noted due to unfavourable movement in freight rate and the strengthening of the exchange rate.

 

Crude Oil Market
The crude oil prices declined consecutively for the second month in December 2021 due to following reasons:
1. There was a growing concern that the rapid spread of the Omicron COVID-19 variant may have an impact on the global economy and oil demand in several major oil consuming countries.

2. Uncertainties about the effectiveness of available vaccines against Omicron and a warning from the World Health Organization stating “the overall risk related to the new variant of concern Omicron remains very high” added worries to the oil market.

3. Some countries introduced stricter mobility restrictions, especially in Europe, while in China, the government imposed a lockdown on a major city of 13 million people.

4. The relatively warm temperatures in the early days of winter in some of the northern hemisphere countries – including the US – cooled optimistic expectations regarding gas to liquids switching.

 

Some agencies also lowered their 2021 and 2022 global oil demand growth forecasts in December 2021 due to persistent market volatility that remained fuelled by rising uncertainty regarding the impact of the rapid spread of the Omicron variant.

These global economic factors in December 2021 contributed to the change in the local Fijian prices for refined oil products for which the prices will be effective from 1 February 2022.

 

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

The major reasons for the change in prices for all LPG products in February 2022 in the Fijian market are the favourable movement in Butane Contract Price (CP) and unfavourable movement in the international freight rate.

 

The gains noted from favourable movement of January 2022 butane CP outweighed the unfavourable movement noted in international freight and the strengthening of the US dollar against the FJ dollar based on December 2021 imports.

Saudi Aramco set January 2022 butane CP at USD$710 per metric ton, USD$40 per metric ton lower than December 2021 Butane CP. This was the second consecutive decrease after six straight monthly increases in Butane CPs.

 

The Platts noted lower demand of butane from some countries in Asia on expectation of dehydrogenation plant maintenance in China in January 2022 as the reasons for the lower LPG CP for the month. The demand for butane in January 2022 decreased due to the following
reasons:
a. Demand from India decreased as buying interest remained low due to an overhang of supplies following the annual Diwali celebrations, when demand typically spikes in India.

b. Demand from China were also expected to be lower as more propane dehydrogenation plants were shut down for maintenance in January 2022 compared to December 2021.

c. LPG demand for heating was low in South Korea as the country is expected to enter an unusually warm winter; and

d. Winter demand in Japan was also low despite the recent cold snap as the country maintained robust inventories from advanced purchases.

 

On the supply side, the United States has increased its LPG supply and the supply will be sufficient to meet the rising demand in Asia, even as Europe and Latin America increasingly compete for US cargoes.

 

Middle East flow of supply of LPG products is seen to be stable to slightly higher, and Iranian shipments could fill the Chinese demand.

Platts also noted that Asia is bracing for consistently costlier LPG versus naphtha, which may be entrenched as the major feedstock for steam crackers in 2022, extending the trend seen for about nine months in 2021, as propane demand rose further on growth in China’s propane dehydrogenation sector.

 

These international market forces impacted the price of LPG products in the Fijian market in February 2022.

Fuel is a significant contributor to carbon emission and climate change.

The impact of climate change poses a larger threat to small island developing states, like Fiji, as was seen with the various tropical Cyclones and the devastation it has caused.

 

Therefore, we need to assist and lead the fight to combat climate change by being responsible in our use of fuel, amongst other things.

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 March 2022.

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



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