Fuel prices rise sharply, diesel up 93 cents per litre

Fijians will face a steep rise in fuel costs from tomorrow, with diesel prices increasing by 93 cents per litre under new rates announced by the Fijian Competition and Consumer Commission (FCCC).

The hike, a 32.18 per cent jump, is the largest among all fuel categories in the May 2026 review and comes amid continued volatility in global fuel markets.

The FCCC confirmed the revised prices will take effect from tomorrow, May 1, while defending its pricing methodology following recent public criticism.

The commission said its framework remains consistent and is based on verifiable international data, with flexibility to adjust assessment periods during periods of extreme market volatility.

"Global fuel markets have been extremely volatile from March to April 2026. Rather than passing the full cost increase on immediately, FCCC used a gradual approach to spread the impact over time," a FCCC statement read.

"Without this approach, diesel alone could have exceeded $4.50 per litre in May. We chose to absorb that shock gradually rather than hit households and businesses all at once."

Under the new pricing structure, kerosene will increase by 59 cents per litre (24.58 per cent), motor spirit by 20 cents (6.83 per cent), and premix by 22 cents (7.97 per cent).

Prices apply within three kilometres of a public road on Viti Levu, with similar increases nationwide.

Diesel will now retail between $3.82 and $4.41 per litre depending on location, with the highest prices recorded in Rotuma. Motor spirit will range from $3.13 to $3.70 per litre, while kerosene remains VAT exempt.

The commission said it had deliberately softened the impact of global price spikes by spreading increases over time. Without this approach, diesel prices could have exceeded $4.50 per litre this month.

“Rather than passing the full cost increase on immediately, we chose to absorb the shock gradually to avoid placing sudden pressure on households and businesses,” the FCCC said.

The increases are largely driven by sharp movements in international fuel markets.

Refined fuel prices rose significantly between March and April, with diesel up 69.60 per cent and kerosene 60.38 per cent.

Freight rates also climbed by nearly 49 per cent, while currency fluctuations added further pressure.

Global oil market instability, including supply disruptions in the Middle East and Gulf region, has tightened supply and pushed up prices, according to the Organization of the Petroleum Exporting Countries.

Despite rising costs, the FCCC emphasised that maintaining a stable fuel supply remains a priority, even if it requires sourcing fuel at higher prices to prevent shortages and support economic stability.

Meanwhile, LPG prices will also increase slightly from May. A 4.5kg cylinder will rise by 6 to 8 cents, while a 12kg cylinder will increase by 16 to 22 cents.

Bulk LPG and autogas prices will see marginal increases of about 1 to 2 cents.

The commission attributed LPG price adjustments to higher international freight costs and exchange rate movements, despite stable butane contract prices.

It also noted supply constraints following disruptions to shipments from Saudi Aramco.

FCCC inspectors will conduct nationwide checks to ensure compliance with the new maximum prices.

Consumers are reminded that while retailers may charge below the set rates, they are not permitted to exceed them.