A DECREASE in the Saudi Arabia wholesale price of Liquid Petroleum Gas will result in the local cost of cooking gas being slashed by 11 per cent.
This, as well as other local price fluctuations, were announced by Commerce Commission chairman Dr Mahendra Reddy yesterday and will come into effect on Friday.
Under the new price changes, a 12 kilogram cylinder of cooking gas will drop from $45.31 to $40.32 while a 4.5 kg cylinder will cost $15.12, down from $16.99.
The price of bulk gas has also dropped from $3.03 per kg to $2.69 per kg. Autogas meanwhile, will experience a 7 per cent reduction from $1.98 per litre to $1.85 per litre. While the price of Liquid Petroleum Gas has dropped, flour, kerosene and diesel prices are poised to increase.
Dr Reddy said the price increase was caused by supply constraints due to droughts in Australia and the US.
Because of this, wholesale prices of bakers flour and normal flour prices will rise by 7 per cent and 3 per cent respectively.
The price of sharp and normal wholemeal flour are expected to increase by 5 per cent.
The increase of crude oil prices in the last quarter as well as a weakened Fiji dollar will see kerosene and diesel increase by 3 cents and 7 cents a litre respectively.
However, the price of premix is expected to drop by four cents while there will be no changes in the price of motor spirits.
Meanwhile, a reduction in steel billet prices, will see both grade 300 and 500 steel prices decrease by 4.82 per cent.
The Attorney-General and Minister for Industry and Trade Aiyaz Sayed-Khaiyum welcomed what he said was very positive news for the Fijian economy.
"The cost of steel and gas will fall and be an important impetus for growth in the economy," he said.
"We are also pleased to announce that this will in fact be the second price reduction of LPG this year, as prices were first reduced in August.
"For certain LPG products this equals a total reduction of as much as 35 per cent."
The minister said unfortunately, while the price of steel and LPG would fall, there would be an increase in the price of flour and certain petroleum products.
"Fiji is a price taker in these instances. When prices increase internationally, this must be reflected in local prices," he said.