THE price of fuel decreases from today. Motor spirit per litre decreases by 13 cents, diesel by 23 cents, kerosene by 28 cents and premix outboard fuel by 14 cents.
The decrease in fuel products of all items was the fourth in the past nine months, after it increased six times this year.
The Prices and Incomes Board said a weak global demand for oil contributed to the tumbling of world market prices. The board said this resulted in the reduction in refined product prices in October with motor spirit recording a reduction of 41 per cent, kerosene by 31 per cent and diesoline by 33 per cent.
The board said the new prices are inclusive of the full instatement of duty from 34 cents to 44 cents per litre for motor spirit, diesel from 9 cents to 18 cents per litre and premix outboard fuel from 17 cents to 27 cents per litre which was announced in the 2009 budget.
Consumer Council of Fiji chief executive Premila Kumar said worldwide fuel prices have decreased to 2005 levels.
Mrs Kumar said the PIB should reduce the two months lag period. She added the Land Transport Authority should seriously look at reviewing taxi and bus fares. "It is unfortunate that we see prices increase but rarely is there a decrease in the price of goods and services," she said, calling on the Commerce Commission to look into the fuel surcharge.
Fiji Taxi Union general secretary Rishi Ram sees the decrease as a relief to vehicle owners.
However, he said taxi fares would not go down given the last taxi fare increase was approved and gazetted on January 1, 2001, when the price of diesel was 40 cents a litre.
"Then on January 4, 2008, the interim taxi fare was increased by 50 cents flagfall for day and night tariff only which was just the tip of the iceberg," Mr Ram said. Attempts to contact the Fiji Bus Operators were unsuccessful yesterday.
Fiji Employers Federation president Dixon Seeto said any reduction in price would reduce the cost of doing business.