The Fijian Competition and Consumer Commission (FCCC) has determined the new regulated prices of Unleaded Petrol, Premix, Kerosene, Diesel and LPG for December 2020.
The new Fuel and LPG prices come into effect from Tuesday, 1 December 2020 and are as follows:
Retail Fuel Prices Motor Spirit from $1.92 to $1.91 per litre, a decrease of 1 cent per litre; Premix from $1.55 to $1.53 per litre, a decrease of 2 cents per litre; Kerosene price remains the same as $1.00 per litre; and Diesel from $1.54 to $1.52 per litre, a decrease of 2 cents per litre.
Retail LPG Prices 4.5kg Cylinder from $11.49 to $11.91, an increase of 42 cents per 4.5kg Cylinder; 12kg Cylinder from $30.63 to $31.77, an increase of $1.14 per 12kg Cylinder;13kg Cylinder from $33.18 to $34.42, an increase of $1.24 per 13kg Cylinder;Bulk Gas from $2.14 to $2.23, an increase of 9 cents per kg; and Autogas from $1.44 to $1.49, an increase of 5 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 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 December 2020 are due to favourable movements noted in international prices for Motor Spirit, Premix and Diesel; unfavourable movement in international freight rates; and further weakening of the USD dollar against the Fijian dollar based on October 2020 imports.
The crude oil prices fell further in October as oil market sentiment remained dominated by concerns about the global oil demand recovery amid sharp increases of daily COVID-19 cases in several regions.
Nonetheless, the decline in crude oil prices was limited due to oil supply disruptions in several regions and supportive data on oil demand in China and India.
Moreover, demand for crude oil was subdued, as global refinery throughputs remained low.
The oil price decline in the first part of October was limited as supply disruptions in the North Sea and an active hurricane season in the Gulf of Mexico gave some support to the market.
These global economic factors in October 2020 contributed to the change in the local Fijian prices for refined oil products which will be effective from 1 December 2020.
The price ofkerosene remains the same as none of the fuel companies imported kerosene in October 2020.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 increase noted in prices for all LPG products in December 2020 in Fiji are; the increase noted in butane contract price, strengthening of USD against Fijian dollar; and increase in international freight rates on the October 2020 importation.
The increase in Saudi CP in October 2020 came as demand was seen recovering in India and China while North East Asia is facing a colder than average winter over December to February, which is expected to boost demand for heating.
Increased demand from petrochemical as well as residential users was believed to have supported higher LPG imports in August. China’s LPG imports from the US resumed in March as the government gave US LPG import tariff exemptions in the context of signing the first phase of a trade agreement with the US earlier this year.
The relatively lower import costs for US LPG was also believed to have attracted buying interest for US barrels and have driven up the total US LPG imports over Middle East suppliers.
India’s two state run oil companies resumed buying spot LPG cargoes from late August for deliveries in September and October as stocks tapered off, and ahead of the peak festive season demand in November. Its year-end requirements are aimed at filing supply gaps after domestic production had dipped earlier in the year due to COVID-19 containment measures and to meet winter demand.
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 2020.
SOURCE – FCCC