Didn’t Government assure no fuel price hike? Opposition MP questions

The Opposition has questioned why fuel prices are rising now, despite earlier assurances by Government that they would remain stable at least until May.

Opposition MP Premila Kumar said even the Minister for Finance had earlier assured the public that fuel prices would remain stable at least until May.

“So why are prices rising now?” she said.

Ms Kumar described the latest fuel price increase announced by the Fijian Competition and Consumer Commission (FCCC) as unacceptable and said it raised serious questions.

“The fuel price increase announced by the Fijian Competition and Consumer Commission is unacceptable and raises serious questions.”

She said under the FCCC’s pricing formula, Fiji uses a one-month lag system, meaning April’s prices should be based on international market conditions and exchange rates from February.

“The ongoing conflict in Iran only began in mid-March and therefore it cannot be used to justify April’s exorbitant price hike.”

However, the FCCC said the increase was driven by sharp rises in international refined fuel prices, a stronger United States dollar and ongoing global supply pressure.

It said global prices for kerosene and diesel had risen significantly, while geopolitical tensions in the Middle East disrupted supply routes, affecting up to 20 per cent of the world’s seaborne oil trade.

The commission said ensuring fuel supply remained critical, even if it meant higher procurement costs to avoid shortages.

Ms Kumar said families and businesses were already under pressure from the high cost of living and questioned what relief measures were being considered.

“Families and businesses are already under pressure from high living costs. What is the government doing to provide relief? In Australia, the government reduced fuel taxes to provide relief at the pump.”

She also called on Government to review fuel taxes.

“Will Fiji’s Coalition Government review its current fuel taxes — 20 cents per litre on diesel and 46 cents on unleaded — to help lower costs for consumers?”