YESTERDAY brought some good news for users of motor spirit and premix as both recorded significant reductions in their per litre price, effective midnight last night.
This was confirmed yesterday afternoon by Attorney-General Aiyaz Sayed-Khaiyum and chairman of the Fiji Commerce Commission Dr Mahendra Reddy at a press conference in Suva.
The price of motor spirit decreased by three cents from $2.62 per litre to $2.59, followed by a four cents decrease in premix from $2.55 per litre to $2.51.
While announcing the stark reductions in the prices of motor spirit and premix, Dr Reddy announced that the prices for diesel, kerosene and liquid petroleum gas (LPG) had increased.
"For this quarter, the fuel that will be sold is based on the fuel that has been purchased last quarter — the last quarter is October, November and December," explained Dr Reddy.
"And the purchase price of fuel is determined by three factors, which is the price of raw materials, so in terms of general petroleum products, it is crude oil and with respect to liquefied petroleum products it's butane, so that's one factor."
He said the second factor was the freight rates and the third factor was the exchange rate.
"The good news for Fiji is that in the last quarter, the US dollar depreciated against the FJD — so the value of our dollar was stronger in the last quarter than it was the previous quarter with respect to the US dollar.
"The second bit of good news is that freight rates didn't change much in the last quarter."
Following this announcement, he said there was also some not-so-good news with regards to Fiji's price changes because of the winter season in Europe.
"The bad news is that given the demand for fossil fuels throughout the world as well as the onslaught of winter in the Euro zone, the prices of these two raw materials — crude oil and butane — have gone up significantly."
Meanwhile, some transport operators have expressed concern for their respective businesses following the announcement by the Attorney-General yesterday.