The Attorney-General and Minister for Industry and Trade, Aiyaz Sayed-Khaiyum (left) with the Fiji Commerce Commission chairman, Dr Mahendra Reddy, yesterday were all smiles as they announced a reduction in the fuel and gas prices which comes into effect from Monday. Photo: KAITLYN CHAMBERLIN
By RACHNA LAL
Good news for consumers as Government has announced significant decrease in the price of all petroleum products and liquefied petroleum gas (LPG).
Kerosene leads the petroleum products category with a reduction of 5.3 per cent, followed by diesel (3.6 per cent), motor spirit (3.5 per cent) and premix (3.4 per cent).
LPG in cylinders, bulk, and auto gas will come down by five per cent.
In most cases, this marks a total reduction of eight per cent in the price of LPG since the beginning of the year, and seven per cent in the case of auto gas.
The new prices come into effect from Monday July 15.
The Attorney-General and Minister for Industry and Trade, Aiyaz Sayed-Khaiyum, said the price reduction would have a positive impact for people’s day-to-day living.
He said the reduction in petroleum price here comes on a backdrop of when it is going up in some other Pacific island countries.
New template success
Mr Sayed-Khaiyum attributed the reduced petroleum prices to the new reviewed fuel template implemented last year.
“The template we used to have was in place for three or four decades and had not been changed. So now with all the stakeholders working together, we revised the template,” he said.
“It is now lot more reflective of the changes in world market prices. So we have been a beneficiary of the new template.”
Current global trend
Fiji Commerce Commission chairman, Dr Mahendra Reddy, the changes to prices of petroleum products depends on three key factors.
“One is change in international world market price, second is the freight charges which does change every quarter and the third which is really applicable to Fiji is the exchange rate,” he said.
“We are quite fortunate that over the last quarter, there has been significant reduction in price of all petroleum products including liquefied petroleum and freight charges as well.
“The reduction in all market prices is attributed to a slowdown in demand in Asia region which is the largest importer of petroleum products.”
Price fluctuations
Mr Sayed-Khaiyum meanwhile has reminded Fijians to remember that energy prices are determined by the international markets, where prices can increase as easily as they decrease.
He explained this was a major reason why the Bainimarama Government is focusing on developing alternative fuel sources – to achieve greater energy independence.
The Commerce Commission undertakes price reviews four times a year to adjust the domestic prices of fuel and LPG to international fluctuations.
Economic benefits
Dr Reddy said petroleum is a critical product for Fiji’s economic production system and this significant reduction in its prices will greatly help in unit cost reduction – this boosting growth.
He said Government is doing all it can to promote LPG use in the transportation sector and there are other industries which also use LPG in the production process.