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New Fuel And LPG Prices For November 2022

Favourable Fuel Price Change Factors Fuel price in Fiji is impacted by movement in the Means of Platts Singapore (MOPS), international freight rates, and foreign exchange rates.
31 Oct 2022 18:02
New Fuel And LPG Prices For November 2022
Gas pump with a drop of gasoline fuel.

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

The fuel price review in Fiji follows a one-month lag period and as such, November 2022 local fuel prices are based on imports made in September 2022 by fuel companies.

FCCC has applied October 2022 Saudi Aramco Butane Contract Price (CP), while international freight rates and foreign exchange rates were based on September 2022 imports to
determine LPG prices for November 2022.

Favourable Fuel Price Change Factors Fuel price in Fiji is impacted by movement in the Means of Platts Singapore (MOPS), international freight rates, and foreign exchange rates.

 

The major reason for the changes in local prices of fuel products in November 2022 is due to:

a) Favourable movement noted in the international refined fuel prices in September 2022 – the price of motor spirit, premix, kerosene, and diesel decreased when compared to
international refined fuel prices in August 2022.

b) Unfavourable movement noted in the international freight rates of all refined fuel products, that is international freight rate increased based on September 2022 imports.

c) Strengthening of the USD against the Fijian dollar on all refined products, however, the decrease in refined fuel price outweighed the strengthening of the exchange rate.

The new prices come into effect from Tuesday, 1 November 2022, and are as follows:

Screenshot 2022-10-31 at 5.51.23 PM

Screenshot 2022-10-31 at 5.52.01 PM

 

Crude Oil Market

Crude oil prices trended lower in September 2022, extending the previous month’s losses.

The decline in crude oil prices was preliminarily driven by:

1. Continued selloffs in future and equity markets and persistent market volatility.

2. Crude prices were under pressure from the softer demand in the spot market.

3. Spot prices came under pressure die to extensions on COVID-19 related restrictions in China.

4. The DME Oman crude oil prices fell month-on-month in September by $7.25 or 7.5%.

5. The accumulation of unsold cargoes in the Atlantic Basin put downward pressure on prices of prompt loading cargoes.

6. North Sea Dated fell to a discount against ICE Brent’s first month contract in September 2022

7. The OPEC Reference Basket (ORB) lowered in September 2022 month-on-month, falling amid declines in related crude benchmarks.

8. Central banks worldwide continued to raise their benchmark interest rates to contain high
inflation, and global manufacturing activity weakened.

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

 

Favourable LPG Price Change Factors

The major reason for the movement in prices for all LPG products in November 2022 in the Fijian economy based on October 2022 Saudi Aramco Butane CP and September 2022
international freight and exchange rate are due to the following reasons:

a) Decrease in Butane Contract Price (CP) compared to last review, from USD630/MT to USD560/MT, a decrease of USD70/MT or 11.11%.

b) Decrease in average international freight compared to last review; and

c) Slightly strengthening of the USD against the Fijian dollar, however, the decrease in Butane Contract Price and international freight outweighed the strengthening of the
exchange rate.

Butane Contract Price Movement

Saudi Aramco set its October 2022 butane term contract price at $560/mt, down by $70 per metric ton from September 2022. Platts reported on rising Middle East supply since May
2022, along with steady exports from the US and Africa ahead of winter, have dragged Asia LPG prices down from 18-year highs in April 2022.

Platts reported that producers have been accepting largely in line with lifters’ monthly term cargo nominations this year, while Qatar Petroleum and Abu Dhabi National Oil Company or ADNOC, have been advancing loading dates to clear swelling inventory.

In October 2022, loading term nomination acceptances, ADNOC loadings were advanced by five to ten days also had advanced loadings for July, August, and September 2022 cargoes.

 

Qatar’s acceptances of October 2022 loading nominations were likewise advanced of its lifting dates. Qatar was heard to have offered up to three October-loading spot cargoes, one
of which was sold at a $30/mt discount to Saudi Contract Prices to China Gas, underscoring mrecent deep discounts of FOB Middle East cargoes.

Kuwait Petroleum Corporation hasregularly offered spot tenders in recent months, and in early August sold 44,000 mt of evenly split LPG for 7 October 2022 to 8 October 2022 loading, at around $15/mt discount to October CPs, after selling a similar cargo for 11 September 2022 to 12 September 2022 loading.

Other than moving term cargoes at earlier-than-nominated dates, Middle East producers offered spot cargoes on Cost & freight (CFR) basis. Rising Middle Eastern exports are
consistent with January’s market projections of 6.6% year on year increase in 202 shipments, as competition for Asian markets intensifies amid growing supply from other
producers.

 

Platts noted that the total 2022 exports from Qatar, the United Arab Emirates,  Saudi Arabia, Kuwait, and Iran are estimated to rise to 38.9 million mt, from 36.5 million mt in 2021. Increased LPG supply from various market sources in October 2022 has led butane price in October 2022 to decline.

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

All consumer-related complaints can be sent directly through the FCCC web app at FCCC.APP. You can also contact FCCC on 8921991 or through live chat on their website at fccc.gov.fj. Please follow us on Facebook at www.facebook.com/FijianCCC/ for the latest updates.



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