The Minister for Industry, Trade, Tourism, Lands and Mineral Resources Hon. Faiyaz Siddiq Koya today announced new prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of prices by the Fiji Commerce Commission. There is a decrease in Fuel and LPG prices for the 3rd quarter 2017 review.
The decrease in refined petroleum product prices for the review period of April – June 2017 are attributed to favourable movement in the:
- production cuts until March 2018, by petroleum suppliers;
- increase in the US petroleum production;
- higher demands for refined petroleum for this quarter; and
- strengthening of the trading currency (US dollar).
The new prices for Fuel and LPG will come into effect from 15 July 2017.
The fluctuations in the international prices,and the movements of freight rates and exchange rates have been considered in the review based on the months of April to June 2017. The resulting effect of the product movements has seen the following changes in fuel prices for the third quarter of 2017 for the Fijian market:
|Table 1: Summary of Fuel Price Changes per Litre|
*Prices will vary outside the cities in Viti Levu beyond 3km from any public road.
Table 2 below shows the domestic fuel price trend for the period 2015 to 2017. Current prices when compared to the prices in year 2015 still shows considerably savings.
|Table 2: Petroleum Product Retail Price from 2015 to 2017|
|Date of Price Change||Motor Spirit||Premix||Kerosene||Diesoline|
- LPG Prices
The review for third quarter 2017 noted decrease in prices of all of the LPG products. The major reasons for the decrease in prices are from the decrease in the international prices for butane in the Saudi Aramco Contract prices, while international freight rates remained constant. The resulting effect of movements has seen the following changes in LPG prices for the third quarter of 2017.
|Table 3: Domestic LPG Price Changes|
|Product Type||Current Prices
FJ ($) **
|Auto Gas (Litre)||$1.77||$1.59||$(0.18)||(10.17)%|
**Prices will vary outside Viti Levu and Vanua Levu
The changes in prices (Table 3) are a result of decreases in the published prices for the Butane cargoes discharged in April, May and June 2017, averaged at USD423.33/tonne in the current quarter from USD565/tonne in the previous quarter.This quarter the prices for LPG correlated with the reduction in demand in Europe due to the end of their peak winter season. This has put downward pressure on LPG prices.
The movement in the exchange rate of the Fijian dollar against the US dollar affecting international freight rates handling charges also attributed to the decrease in the domestic LPG price.
The price changes in Fuel and LPG is a direct impact of the international market influence given that Fiji is a price taker to world market prices for both refined oils and butane.
Fuel is a significant contributor to carbon emissions and climate change and the impact of climate change poses a larger threat to small island developing states like Fiji. Therefore, as the Hon. Prime Minister is leading the charge for all Small Island and vulnerable states in the international arena, at COP23 and Oceans Conference, we need to assist and lead in the fight to combat climate change by being responsible in our use of fuel, amongst other things.