Changes made to fuel prices announced yesterday
The government has amended the new prices of fuel and LPG gas which were announced yesterday by the Minister for Industry, Trade and Tourism Hon. Faiyaz Siddiq Koya. The Minister had announced major reductions in prices of Unleaded Patrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of prices by the Fiji […]
Peni Shute and Nacanieli Tuilevuka
April 14, 2016 9:55 pm
The Minister had announced major reductions in prices of Unleaded Patrol, Premix, Kerosene, Diesel and LPG products, based on the latest review of prices by the Fiji Commerce Commission.
In a press conference yesterday, Minister Koya said the international prices for fuel have fallen in the last three months contributing to the price reductions.
The reduction in fuel prices are effective today, are as follows:
- Motor Spirit from $1.90 to $1.67 per litre, a decrease of 23 cents per litre or 12.11%
- Premix from $1.78 to $1.52 per litre, a decrease of 26 cents per litre or 14.61 %
- Kerosene from $1.35 per litre to $1.00 per litre, a decrease of 35 cents per litre or 25.93 %
- Diesel from $1.50 to $1.24 per litre, a decrease of 26 cents per litre or 17.33%
- 4.5 KG cylinder from $12.52 to $11.51, a decrease of $1.01 or 8.07%
- 12 KG cylinder from $33.38 to $30.70, a decrease of $2.68 or 8.03%
- Bulk from $2.36 a KG to $2.15 a KG, a decrease of 19 cents or 8.05% and
- Auto Gas per litre from $1.58 to $1.45 a decrease of 13 cents or 8.23%.
Minister Koya further highlighted that based on submissions by Fiji Fuel Retailers Association and thorough assessments by the commission of the fuel retail markup has been changed from percentage markup to fixed cent per litre.
This markup will be applied to all products (Diesel,Unleaded,Kerosene and Premix). The new mark up fixed at 10 centrs per litre for Unleaded and Premix, whilst for Kereosene and Diesel the mark up has been fixed at 9.5 cents per litre,
Minister Koya said the change in the methodology of markup application ensures that the retailers margin remains constant irrespective of the movement of international prices.
This reduces the risk of loosers to the retailers due to fluctation world market prices. This change in methodlogy provides certainty for traders and a solid platform for future investment decision.
Minister Koya said the reduction of prices of fuel and LPG could not be more timely, as Fiji is in the rebuild phase, following Cyclone Winston.
This reduction will provide a relief to all Fijians.
Minister Koya reminded all consumers that whilst we enjoy the reduction in fuel prices we need to use fuel wisely. Fuel is a significant contributor to carbon emission and climate change. We have experienced the impact of climate change with devastating cyclone, such as Winston. Therefore, we need to be responsible in our use of fuel.
Fuel is a significant contributor to carbon emission and climate change. We have experienced the impact of climate change with devastating cyclone, such as Winston. Therefore, we need to be responsible in our use of fuel.
Minister Koya stated that whilst Fiji is a price taker on commodities such as fuel and LPG products in the international market, progressive policies like the VAT reduction announced in the 2016 Budget, enables the Government to ease the burden on Fijian consumers, leaving them with more disposable income and savings.
Minister Koya has cautioned the traders to comply with the new prices to avoid the imposition of a spot fine of up to $3,000.00 per offence to a body corporate and $1,000.00 per offence for natural person and entities under the Commerce Commission Decree 2010.
Meanwhile, the Consumer Council of Fiji, Chief Executive Officer, Ms. Premila Kumar has also warned traders.
Consumers should not be confused by mischievous explanations given by traders as to why they have not adjusted their prices to reflect price reduction. All service stations, supermarkets and shopkeepers must adhere and pass on the benefit to the consumers.
If any trader refuses to sell or give explanation as to why they have not changed the prices, consumers should immediately report the name of the trader, their location and time of the incident to the Council or to the Fiji Commerce Commission.
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