Fuel and gas prices will increase from tomorrow.
The Fijian Competition and Consumer Commission (FCCC) has determined the new regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG for January 2021.
The new Fuel and LPG prices come into effect from Friday, 1 January 2021 and are as follows:
Retail Fuel Prices
• Motor Spirit from $1.91 to $1.94 per litre, an increase of 3 cents per litre;
• Premix from $1.53 to $1.57 per litre, an increase of 4 cents per litre;
• Kerosene from $1.00 to $1.08 per litre, an increase of 8 cents per litre; and
• Diesel from $1.52 to $1.61 per litre, an increase of 9 cents per litre.
Retail LPG Prices
• 4.5kg Cylinder from $11.91 to $12.57, an increase of 66 cents per 4.5kg Cylinder;
• 12kg Cylinder from $31.77 to $33.53, an increase of $1.76 per 12kg Cylinder;
• 13kg Cylinder from $34.42 to $36.32, an increase of $1.90 per 13kg Cylinder;
• Bulk Gas from $2.23 to $2.33, an increase of 10 cents per kg; and
• Autogas from $1.49 to $1.56, an increase of 7 cents per litre.
The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such the December 2020 Fuel and LPG regulated prices are based on the importations made in October 2020 by the Fuel Companies and LPG Companies in Fiji.
Fuel Price Change Reasons
The Fuel price in Fiji is impacted by the movement in Means of Platts Singapore (MOPS), the international freight rate and the exchange rate.
The fluctuations noted in Local Fuel prices for January 2021 are due to unfavourable movements noted in the international prices for Motor
Spirit, Premix, Kerosene and Diesel; favourable movement in the international freight rates; and slightly weakening of the USD dollar against the Fijian dollar based on November 2020 imports.
Crude oil prices bounced back in November following crude futures contracts rally after positive news on COVID-19 vaccines raised optimism about oil demand recovery in the coming months.
Crude oil market fundamentals improved due to robust crude demand in AsiaPacific.
Nonetheless, weak refining margins, increase in the crude oil supply and high stocks levels, including in the US, have constrained prices. Crude oil futures prices rallied in November to reach their highest levels since March, buoyed by news about promising new COVID-19 vaccines that brightened the global oil demand outlook.
The outlook for oil market fundamentals also improved as investors were expecting a delay in the planned easing of crude oil production adjustments from OPEC and participating non-OPEC producers in the Declaration of Cooperation (DoC).
The contango structure of oil futures prices flattened considerably in November.
These global economic factors in November 2020 contributed to the significant change in the local Fijian prices for refined oil products which will be effective from 1 January 2021.
LPG Price Change Reasons
The LPG price in Fiji is impacted by the movement in Saudi Aramco Butane Contract Price (CP), the international freight rate and the exchange rate.
The major reason for the increase noted in prices for all LPG products in January 2021 in Fiji are due to the increase noted in butane contract price, reduction noted in international freight cost due to weakening of USD
against Fijian dollar compared to last review.
The increase in Saudi CP in November 2020 have risen on the back of firmer crude benchmarks, and as North Asia demand was supported by forecast of a severe winter.
Platts have noted increased CP in Asia-Pacific and Middle East since November 2020 on recovering demand from China and India as North Asian buyers are stocking up until February due to winter weather forecast.
This market imbalance led to an increase in butane contract price for
November 2020 for which the local prices will be impacted in January 2021.
Fiji is directly impacted by the world market prices for both refined oils and LPG.
As such, any changes to the world market prices will be reflected in Fuel and LPG prices in Fiji.
The FCCC will conduct the next Fuel and LPG price review on 1 January 2021.