Fuel and LPG prices fall sharply from tomorrow

Fijian households, motorists and businesses will pay less for fuel and LPG from tomorrow after the Fijian Competition and Consumer Commission (FCCC) announced sharp price reductions for July.

Diesel records the biggest drop, falling by between $1.19 and $1.25 per litre across the country. Motor spirit (petrol) prices will decrease by 49 to 52 cents per litre, while kerosene will be cheaper by about 42 cents per litre. LPG prices will also fall, reducing household cooking costs.

FCCC chief executive officer Senikavika Jiuta said the reductions followed easing international fuel prices after progress in ceasefire negotiations and peace discussions in the Middle East.

"Every reduction in fuel and LPG prices provides welcome relief for families, transport operators and businesses. We know that lower fuel costs can make a real difference to household budgets and operating costs, as consumers may now begin to benefit from improving international market conditions," Ms Jiuta said.

The July prices are based on fuel imported in May under FCCC's regulated pricing methodology, which considers the Means of Platts Singapore (MOPS) benchmark, international freight costs and foreign exchange movements.

Ms Jiuta said international markets had responded positively to peace discussions involving the United States and Iran, as well as expectations surrounding the reopening of the Strait of Hormuz, contributing to lower global fuel prices.

However, she cautioned that the recent reductions should not be seen as a sign that global fuel markets had fully stabilised.

"While we're pleased to see lower fuel and LPG prices easing the burden on households and businesses, global markets remain unpredictable and international events can change quickly," she said.

FCCC said it would conduct inspections nationwide to ensure retailers comply with the regulated maximum prices.

According to the commission, the July prices reflect lower crude oil prices recorded in May, driven by improving supply expectations, weaker refinery demand in Asia and increased global crude availability.

FCCC also urged consumers to remain realistic, noting that fuel prices remain vulnerable to geopolitical tensions and other international market developments.