The Fijian Competition and Consumer Commission (FCCC) has determined the new regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG for May 2020.
The new Fuel and LPG prices come into effect from Friday 1 May 2020 and are as follows:
Retail Fuel Prices
• Motor Spirit from $2.06 to $1.80 per litre, a decrease of 26 cents per litre;
• Premix from $1.90 to $1.43 per litre, a decrease of 47 cents per litre;
• Kerosene from $1.47 to $1.08 per litre, a decrease of 39 cents per litre; and
• Diesel from $1.71 to $1.67 per litre, a decrease of 4 cents per litre.
Retail LPG Prices
• 4.5kg Cylinder from $14.43 to $14.03, a decrease of 40 cents per 4.5kg Cylinder;
• 12kg Cylinder from $38.47 to $37.42, a decrease of $1.05 per 12kg Cylinder;
• 13kg Cylinder from $41.67 to $40.53, a decrease of $1.14 per 13kg Cylinder;
• Bulk Gas from $2.647 to $2.605, a decrease of 4 cents per kg; and
• Autogas from $1.78 to $1.74, a decrease of 4 cents per litre.
The Fuel and LPG price review implemented by FCCC follows a one-month lag period, as such the May 2020 Fuel and LPG regulated prices are based on the importations made in March 2020 by the Oil 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 reduction in local Fuel price for May 2020 are due favourable movement in the international prices for Motor spirit, Premix, Kerosene
and Diesel (MOPS); unfavourable movement in the international freight rates; and strengthening of the USD dollar against the Fijian dollar based on March 2020 imports.
The crude oil prices collapsed in March 2020, recording their deepest monthly drop since the global financial crisis in 2008.
The ramifications of the COVID-19 pandemic were still the main driving force, resulting in unprecedented worldwide oil demand shock and massive sell-offs in the global oil markets, amid a significant crude surplus.
An unprecedented oil demand shock caused by the COVID-19 pandemic pushed almost all countries to take drastic measures to contain an unprecedented heath crisis.
Most countries, including the major economies, have imposed lockdowns, travel restrictions and social distancing, which caused an abrupt slowdown in global economic activity and a historic oil demand contraction, particularly in transportation fuels like jet fuel, gasoline and diesel.
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 reasons for the decrease in prices for all LPG products for May 2020 is due to decrease in butane price, increase in international freight rates and strengthening of the USD against the Fijian dollar based on March 2020 imports.
The consecutive reduction in February and March 2020 butane CP was due to coronavirus outbreak which continued to curb China’s domestic LPG consumption and import demand.
China used to be the largest importer/buyer of the Middle Eastern LPG cargoes and since Chinese cities imposed stringent travel lockdowns in an effort to prevent the spread of the coronavirus, as such China’s LPG demand reduced from mid-January 2020 and this led to oversupply of LPG in Middle Eastern market, which negatively impacted the international butane CP for March 2020.
Demand destruction from COVID-19 disrupted mainland China’s energy system and the virus has now propagated through the energy markets globally, lowering energy demand in its wake.
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 June 2020.