DOMESTIC gas consumption isn't expected to increase when the price of gas drops today, Blue Gas Limited director Ajay Punja said.
"People in Tamavua still have outdoor cooking facilities which they use. It's a culture. People love to cook on the primus," he said following the decision and announcement by the Commerce Commission to reduce gas prices.
He said the market could expect a slight increase in use but this would not include the domestic market — even though gas is a price controlled item.
The wholesale price of bulk gas for industrial use will drop by $1.10 to $3.03, the commission said amid other changes to the prices of cooking gas and auto gas.
"We need a fair return on our investment. We had plans for expansion but now we have to put that on hold to see how this price structure works.
"We've been price monitored, but not price controlled. As an investor, no investor likes to have their returned investment controlled," Mr Punja said.
Blue Gas imports from Australia where domestic users pay 50 per cent more than what is being offered to the Fiji domestic market, Mr Punja said.
He said the world market price increased by $US155 or $F277 per tonne from the previous price of $US620 or $F1110 per tonne.
The price ceiling set by the commission will be reviewed on a quarterly basis to reflect global prices, commission chairman Doctor Mahendra Reddy said.
The commission made its determination on gas prices for wholesale and retail of all forms of Liquid Petroleum Gas sold in Fiji after its independent research, analysis and computation — emanating from complaints and public outcry over the ever rising price of gas.
Dr Reddy said the commission had a good working relationship with Blue Gas adding that it was a local company with better understanding of the socio economic aspiration of the Fijian people.