Fuel prices to further increase from tomorrow
14 October, 2018, 12:16 pm
FUEL prices will further increase from tomorrow, Monday October 15, after a review by the Fijian Competition and Consumer Commission (FCCC).
The latest fuel price increase for this quarter will see consumers digging deeper into their pockets for the price of motor spirit which increases by 6 cents per litre, premix outboard fuel up by 5 cents per litre, diesel up by 7 cents per litre while kerosene will be more costly by 4 cents per litre.
The new price of motor spirit will now be $2.24 per litre, premix outboard fuel will be $2.07, diesel will cost $1.97 while kerosene will be $1.72 per litre.
|MOTOR SPIRIT||$2.18 per litre to $2.24 per litre||Increase by 6 cents|
$2.02 per litre to $2.07 per litre
Increase by 5 cents
|KEROSENE||$1.68 per litre to $1.72 per litre||Increase by 4 cents|
|DIESEL||$1.90 per litre to $1.97 per litre||Increase by 7 cents|
The last review for fuel prices conducted by FCCC earlier on July 13, 2018 also saw an increase determined by changes to the world market prices and reflected in fuel and LPG prices in Fiji.
In the most recent review, the FCCC stated that the increase in local fuel prices was due to unavoidable supply constraints from Organisation of Petroleum Exporting Countries (OPEC).
While the commission constantly monitors international prices, it says it will always pass on reductions where possible.
FCCC chief executive officer Joel Abraham said it was important to remember that these prices were determined by the international markets, where they can just as easily rise as fall.
“Unfortunately, this time, we have had an upward movement,” he said.
“The sole reason for the increase in petroleum price is due to OPEC’s failure in meeting its global production commitments. In recent years, OPEC has sought to reduce supply in a bid to drive up the global oil prices.”
In June 2018, OPEC met again and agreed to increase production output.
FCCC stated that it was anticipating the prices to be stable as OPEC had made a global commitment to produce one million metric tons per day of crude oil from July 1, 2018.
However, these target were not complied with as per the production statistics for July and August leading to increase in the world market price.
Mr Abraham said unfortunately, this rise in prices was “out of Fiji’s control as we are a price taker in the global fuel market”.