20 Cents Per Litre Fuel Duty Removed

Fijians can be expected to pay lower price for fuel compared to those in overseas coun­tries.

This is after a Govern­ment fuel duty has been removed.

Attorney-General and Minister for Economy Ai­yaz Sayed-Khaiyum an­nounced this last night.

“The 20 cents per litre fuel duty will be removed to of­fer much-needed relief to consumers and businesses.

“After disruptions to inter­national travel and global supply chains at the start of the pandemic resulted in global crude oil prices plum­meting to an all-time low, an additional fiscal duty of 20 cents per litre was imposed in the COVID-19 Response Budget to help compensate for COVID-19 induced rev­enue losses from income taxes and VAT, and to main­tain domestic fuel prices at affordable levels.

“Subsequently, the duty on diesel was increased from 20 cents to 40 cents per litre, and unleaded fuel was in­creased from 46 cents to 66 cents per litre.

“Recently, crude oil prices have been increasing due to higher global demand and supply-side disruptions caused by the escalating Russia-Ukraine conflict.

“International crude oil prices have increased to over US$100 per barrel with indications of further in­creases in the near-term.

“This has translated to higher domestic fuel prices, which are affecting trans­portation costs, consump­tion and business activity, and could potentially im­pact Fiji’s economic recov­ery.”

This reduction in fuel duty will offer relief to business­es and ordinary Fijians.

Government will lose $56 million in revenue annu­ally from this measure.

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