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The Fijian Competition and Consumer Commission says consumers should not expect immediate reductions in fuel and LPG prices.

This is despite reports of a peace agreement between the United States and Iran that could ease global oil market pressures.

The Commission has welcomed the development. It states the news is positive for the global economy and for Fiji.

However, it warned that any relief at the pump will take time to reach local prices.

FCCC Chief Executive Officer Senikavika Jiuta states the announcement is encouraging. She also urged the public not to expect quick price changes.

She said Fiji’s fuel pricing system operates with an approximate two-month lag. Current prices reflect earlier international procurement costs, freight rates, and broader market conditions.

Jiuta states any sustained drop in global oil prices will only show in future reviews and the system is designed to reflect actual landed costs, not short-term fluctuations.

She said the Strait of Hormuz disruption had wider effects beyond crude supply. Shipping routes changed. Insurance costs rose, freight charges also increased.

Jiuta said suppliers to the Singapore benchmark market are still clearing higher-cost stock. Fiji uses this market as its pricing reference and this continues to delay any fall in local prices.

She said improvements in global prices will take time to filter through. Shipping patterns must normalise. Insurance costs must ease. Market confidence must also recover.

During the conflict period, higher risks in the Strait of Hormuz pushed up global freight and insurance costs. These increases were passed on to importing countries, including Fiji.

The Commission said its Fuel Monitoring Taskforce will continue close surveillance of fuel and LPG traders. It will also monitor wider market trends and the goal is to ensure global developments are not used to justify unfair price increases.

Jiuta said uncertainty requires responsibility from businesses and consumers.  She adds that most operators act fairly, but warned against opportunistic pricing.

The Commission, according to Jiuta would investigate and take action where price movements are not supported by real cost changes.

The FCCC said it remains committed to protecting consumers and it also aims to maintain a fair and competitive market for businesses.