Call to re-consider energy consumption habits
It may be time to re-evaluate energy consumption habits given the unpredictability of global fuel prices and its environmental impact, says the head of the local pricing agency.
Local prices of unleaded petrol, premix, kerosene, diesel and Liquid Petroleum Gas (LPG) products go up from today following a review by the Fijian Competition and Consumer Commission (FCCC).
Its chief executive officer, Joel Abraham, urged people to look towards renewable energy and consider measures to minimise non-renewable energy use - car pooling, for instance.
Global oil prices rose on Friday, with analysts attributing the climb to a resurgent Libyan supply and global trade disputes against a tighter crude oil supply.
“The local prices increasing is a direct result of the movement of crude oil prices in the international market,” Mr Abraham said.
“The Fijian pricing system looks at the international prices, combined with the freight rates and the movement in the exchange rate to calculate its prices.
“Fiji being a small country, we do not have the ability to influence the market given that our national demand is so small it does not match that of other larger countries.”
Mr Abraham believes the increase presents a chance for Fijians to get behind the nation in its global effort against climate change.
“The FCCC encourages consumers to re-look at their energy consumption patterns” Mr Abraham said.
“Fiji took the presidency of COP 23 and we are leading the fight against climate change and therefore it is essential that all Fijians take it seriously.
“It’s not just about how the increase will hit people’s pocket but it’s also about the long-term sustainability of our envirionemnt - people need to look at that and consider their consumption of energy.”
From a competition perspective, Mr Abraham says the agency will continue to monitor the local market for ‘anti-competitive’ behaviour.
“We are hoping that the market will continue to be compeitive and the FCCC will continue to ensure that there is no cartel-like behaviour and that the retailers are embracing compeition as is required by Fijian law,” Mr Abraham said. The agency will conduct the next fuel and LPG price review on 15 October, 2018.
By the Fijian Competition and Consumer Commission
The prices from 15 July, 2018 to 14 October, 2018 is mainly determined by the movement in the international prices for petroleum and LPG products since the last quarter.
The oil market was underpinned in the last quarter (April 2018 to June 2018) by renewed geopolitical issues, tightening product inventories and robust global demand including the effects of a stronger dollar and rising US production.
Strong conformity by the Organisation of the
Petroleum Exporting Countries (OPEC) and participating non-OPEC nations in terms of production adjustments through the ‘declaration of co-operation’ also continued to support the oil market.
LPG market
For the LPG market, it had been observed that sentiment in the region was healthy, supported by demand from the petrochemical sector and traders had required gas to meet demand from regional consumers such as Indonesia and Taiwan, therefore with international oil prices rising, LPG prices further rose.
The changes in prices for both Petroleum and LPG products are further impacted by unfavourable international freight rates and the strengthening of the US dollar.
Fiji is directly affected by the world market prices for both refined oils and LPG.
As such, any changes to the world market prices will be reflected in the fuel and LPG prices in Fiji.
FCCC will conduct the next fuel and LPG price review on 15 October 2018.