SUNBIZ

Russia Ukraine War Affects Global Crude Oil Prices Here

The Fijian Competition and Consumer Commission (FCCC) regulates the wholesale and retail prices of refined fuel products every month following a ‘one-month lag period’ – meaning that the April 2022 fuel price assessment for motor spirit, premix, kerosene and diesel will be based on fuel importations made by fuel companies in February 2022.
17 Mar 2022 13:00
Russia Ukraine War Affects Global Crude Oil Prices Here
Fuel

The Fijian Competition and Consumer Commission (FCCC) regulates the wholesale and retail prices of refined fuel products every month following a ‘one-month lag period’ – meaning that the April 2022 fuel price assessment for motor spirit, premix, kerosene and diesel will be based on fuel importations made by fuel companies in February 2022.

 

FCCC receives submissions from fuel companies every month and determines the regulated fuel price based on a “lowest operator cost assessment” basis.

The prices of fuel in Fiji are dependent on three variable factors – the world market price for refined oil, benchmarked by the Means of Platt’s Singapore (or MOPS), international freight rates and foreign exchange rates.

 

FCCC has noted that the price of crude oil, as a pricing benchmark for refineries globally, has increased significantly in January 2022 and February 2022.

The increase in this global crude oil benchmark price is an indication that prices of refined fuel products in Fiji will increase.

 

The cost of crude oil in oil producing nations, the refinery margins, distribution costs, fuel premium costs, the demand and supply for fuel, insurance, freight and transport costs, the impacts of COVID-19 and geo-political reasons are some of the factors that determine whether international refined fuel prices for a particular month will increase or decrease.

 

Fuel and gas prices continue to hit record levels due to fears of global economic shocks stemming from Russia’s invasion of Ukraine.

The forecast fuel price increases worldwide at the moment is primarily attributed to these geo-political tensions, which have only exacerbated the ongoing negative impacts of COVID19.

These economic and political factors are beyond Fiji’s control, and as such, Fiji becomes the price taker of refined fuel product prices.

Fijian consumers are urged to plan consumption for energy needs.

 

Feedback: ranobab@fijisun.com.fj



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