FCCC says diesel could have hit $4.60 a litre

Diesel prices would have reached $4.60 a litre if the Fijian Competition and Consumer Commission (FCCC) had not extended its fuel pricing window by 20 days.

The decision drew criticism from Parliament’s Standing Committee on Economic Affairs on Tuesday over a lack of transparency.

FCCC chief executive officer Senikavika Jiuta defended the move before the committee, which was reviewing the commission’s 2023-2024 annual report.

“If I could just rightfully state out here, your diesel price would have gone up to $4.60. We saw that coming,” Ms Jiuta said.

She said the commission extended its pricing reference period from February 1 to March 20, adding 20 days to its usual one-month window, to cushion the impact of rising global fuel costs linked to tensions in the Middle East.

Diesel is currently priced at $3.82 a litre.

FCCC normally calculates fuel prices using one month of international market data, including fuel costs from Singapore, freight charges and foreign exchange rates.

However, deputy chairperson and Opposition MP Premila Kumar said the change was not clearly communicated when April fuel prices were announced.

“When the fuel price was announced that night, your statement simply said it was the same process, same methodology,” Ms Kumar said.

“If you have increased it by 20 days, explain it clearly when you release the pricing so people understand it.”

Ms Jiuta acknowledged the communication could have been clearer.

“We should have explained it much better and much clearer. Definitely, I agree,” she said.

She added that the commission was now monitoring supply concerns ahead of June fuel pricing.