Fuel prices to increase across the board
July 30, 2021 1:55 pm
Fuel and gas prices will increase across the board from August 1st, due to market optimism which is supported by accelerating vaccination rates in several countries and easing of travel restrictions.
The Fijian Competition and Consumer Commission says the crude oil price rose firmly last month, extending the previous month’s gains because investors turned increasingly optimistic about the outlook for oil demand recovery and expectations of a stronger global oil market in the second half of 2021.
The FCCC says prices in Fiji are affected due to unfavourable movements in the international prices and favourable movements in the international freight rates for all refined oil products.
It says these fluctuations in international prices and freight rate were supported by the strengthening of the USD against the Fijian dollar based on June imports.
From Sunday, the price of Motor Spirit will increase by five cents per litre and cost $2.46.
Premix will also increase by five cents from $2.03 and cost $2.08 while Kerosene sees a major hike of 16 cents per litre. Kerosene will increase from $1.47 to $1.63 per litre.
Diesel will increase by eight cents from $1.97 to cost $2.05 per litre.
The FCCC says the LPG price in Fiji is impacted by the movement in Saudi Aramco Butane Contract Price, the international freight rate and the exchange rate.
According to world industry experts, the surging LPG prices is due to the tightening demand for the commodity as global economies recover from COVID-19 lockdowns and more roll-out of vaccines in big economies.
The FCCC says these international market forces impacted the price of LPG products in the Fijian market.
A 4.5kg Cylinder will increase from $13.08 to $13.78, an increase of 70 cents, 12kg Cylinder will also increase from $34.88 to $36.74, an increase of $1.86 per.
13kg Cylinder will increase from $37.79 to $39.80, an increase of $2.01, Bulk Gas will increase from $2.47 to $2.60, an increase of 13 cents per kg; and Autogas will increase from $1.65 to $1.74, an increase of 9 cents per litre.
The FCCC will conduct the next Fuel and LPG price review on September 1st.