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FCCC clarifies fuel price difference between Taveuni and Vanua Levu

September 17, 2020 7:57 am
FLP Leader Mahendra Chaudhry and FCCC Chief Executive Joel Abraham. [Source: Google]

The Fijian Competition and Consumer Commission has clarified that fuel prices in Taveuni are based on the greater supply expenses like the cost of freight to the island.

FCCC Chief Executive Joel Abraham has clarified this after concerns were raised by the Fiji Labor Party Leader Mahendra Chaudhry.

Abraham says one of the major differences between the two markets is that Vanua Levu is volume-driven, while Taveuni has access to a more limited volume.

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He stresses that as part of their role to secure effective competition in the market, they are also mandated to ensure equitable returns for businesses.

Abraham says this means is that the FCCC must take into account all factors so that a business is able to make a reasonable profit.

He went on to explain that Taveuni is supplied by Pacific Energy and Legend Fuel Supplies and FCCC determined the current fuel prices there after evaluating the cost borne by them which turned out to be substantial, which is why prices are higher.

He adds that as part of the evaluation, FCCC took into account a number of factors like shipping costs, truck hire costs, wages, rent, depreciation and other operational costs before setting the price.

Meanwhile, FLP Leader Mahendra Chaudhry had earlier posted up on social media concerns on the increased price of fuel in Taveuni as compared to Vanua Levu and Viti Levu.

Chaudry claims that people in Taveuni feel they were being cheated considering that the price per litre in Vanua Levu is only 5 cents more than that paid in Viti Levu.

Chaudhry went on to question why people in Taveuni are being forced to pay 35 cents a litre more for all types of fuel compared to the price paid by consumers on Viti Levu.

The FLP Leader says he intends on taking the issue up with the Fiji Consumer and Competition Commission claiming that the people of Taveuni were bitter about having to pay so much more without any justification.

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