New fuel and LPG prices announced

There is a decrease in price for LPG products, Motor Spirit and Kerosene while Diesel and Premix will slightly increase for the 4th quarter 2017 review. Photo: FILE.

The Minister for Industry, Trade, Tourism, Lands and Mineral Resources, Faiyaz Koya today announced new prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of prices by the Fijian Competition & Consumer Commission (FCCC).

There is a decrease in price for LPG products, Motor Spirit and Kerosene while Diesel and Premix will slightly increase for the 4th quarter 2017 review. The changes in prices are attributed to the following changes:

(i)    The strengthening of the Fijian currency against the US dollar offsetting increases against international prices;

(ii)   Increase in international prices of Diesel and Premix affected by supply disruptions due to damaged diesel refinery infrastructure caused by Hurricane Harvey and increase global demand for Diesel and input products for Premix;

(iii)  Increase in international freight tanker rates for petroleum products.

  1. Petroleum Products

The new Fuel prices, which will come into effect on 15 October 2017, are as follows:

  • Motor Spirit from $1.90 to $1.89 per litre, a decrease of 1 cent per litre;
  • Kerosene from $1.31 to $1.30 per litre, a decrease of 1 cent per litre;
  • Premix from $1.73 to $1.75 per litre, an increase of 2 cents per litre;
  • Diesel from $1.53 to $1.55 per litre, an increase of 2 cents per litre;

The petroleum prices from 15 October 2017 to 14 January 2018 is mainly determined by unfavourable movement in the international prices for Premix and Diesel except for Motor Spirit and Kerosene since the last quarter. It was noted that global crude oil prices improved as OPEC and non-OPEC countries continued to conform to voluntary output adjustments, while US stocks declined further.

A strong increase in international demand, coupled with unplanned refinery shutdowns in Europe and the U.S. Gulf Coast (USGC), has supported this increase in international prices. The refinery shut down in the USGC was caused by Hurricane Harvey.

  1. LPG products

The review for fourth quarter 2017 noted decrease in prices for all of the LPG products and the new prices that will come into effect on 15 October 2017 are as follows:

  • 5 KG cylinder from $12.67 to $12.58, a decrease of 9 cents;
  • 12 KG cylinder from $33.78 to $33.55, a decrease of 23 cents;
  • Bulk from $2.39 a KG to $2.38 a KG, a decrease of 1 cent; and
  • Auto Gas per litre from $1.59 to $1.58, a decrease of 1 cent.

The major reasons for the decrease in prices is the strong performance of the Fijian economy leading to the strengthening of the Fijian dollar against the US dollar, which has offset the increase in the international prices for butane, resulting in price decrease for all LPG products.

Furthermore, 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. This price review noted international price increases as a direct result of hurricane Harvey, showing the impact that climate change.

“Therefore, just as our Honourable Prime Minister is taking the lead role as the incoming President of COP23, advocating on the detrimental effects of climate change in the international arena, we as Fijian must do our part by being responsible in our use of fuel, amongst other things,” said Minister Koya.

DEPTFO