The increased prices of fuel go into effect tomorrow, after the Fijian Competition and Consumer Commission (FCCC) determined the new regulated price for Unleaded Petrol (Motor Spirit), Premix, Kerosene, Diesel and LPG products for June 2024.
The Fuel and LPG product price review follows a one-month lag period. Therefore, the local Fuel and LPG prices for June are based on Refined Fuel and Butane imports made by Fuel and LPG companies in April 2024.
CHANGE FACTORS
Fuel prices in Fiji are impacted by movements in the Means of Platts Singapore (MOPS), international freight rates and foreign exchange rates.
The major reasons for the fluctuations noted in the prices of refined fuel products in the Fijian market in June 2024 based on April 2024 imports are due to:
1. Motor Spirit and Premix
The price of motor spirit and premix is based on same the international refined price and international freight benchmarks. FCCC’s independent analysis revealed that price of motor spirit and premix will increase in June 2024 due to the following factors:
a. Unfavourable movement was noted in the international refined fuel price of motor spirit, that is the cost price of refined motor spirit increased compared to last month’s review.
b. Favourable movement was noted in the international freight rate marker for motor spirit, that is international freight rate marker decreased when compared to last month’s review.
c. The US dollar strengthened against the Fijian dollar for motor spirit and premix.
2. Kerosene and Diesel
The price for kerosene will decrease in June 2024, while the price for diesel will increase due to the following factors:
a. Unfavourable movement was noted in the international refined fuel price of kerosene and diesel, that is, the cost price of refined kerosene and diesel increased compared to last month’s review.
b. Favourable movement was noted in the international freight rate marker for kerosene and diesel, that is international freight rate marker decreased when compared to last month’s review.
c. The US dollar strengthened against the Fijian dollar for kerosene and diesel.
3. Crude Oil Market
In April 2024, the crude oil price increased, with major benchmarks climbing over 5 per cent, month-on-month, primarily supported by increased risk premiums earlier in the month amid geopolitical tensions. The crude oil price increased in April 2024 due to:
a. The global economy showed signs of resilience amid a continuous rebound in the manufacturing activity in emerging economies.
b. The trader sentiment remained optimistic about the outlook of crude market fundamentals ahead of the driving season, despite some signs of weakness were noted in the diesel market in April 2024.
c. The crude oil spot market was also maintained by a firm demand for May 2024 loading barrels, specifically for sour crude, as in some regions the refinery maintenance season reached its peak, prompting a steady increase in crude intake, signalling a recovery in refining activity ahead of the summer holiday season.
d. Demand from Asia-Pacific refiners remained sustained, helping absorb available supply in the Atlantic basin amid refinery maintenance in Europe.
Source: Fijian Competition and Consumer Commission
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