Fuel prices go down
On the domestic front the increase of the global prices has allowed us to take advantage of the lower fuel prices.
Fiji is fortunate to take advantage and benefit from the drop in fuel and LPG prices. Minister for Commerce, Trade, Tourism and Transport Faiyaz Koya made the remark in a joint press conference with the Fijian Competition and Consumer Commission (FCCC) yesterday.
“The drop in prices is good timing unfortunately coming out of a bad period,” said Mr Koya.
“The coronavirus (COVID-19) pandemic has prompted major economies to slow down and some have had a low demand contraction.” Mr Koya said the decline in the global demand was expected to project to the first half of 2020.
On the domestic front the increase of the global prices has allowed us to take advantage of the lower fuel prices.
Price Review
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.
FCCC chief executive officer Joel Abraham clarified the delay in the change of fuel prices. He said many have noticed the price of crude oil had dropped last week.
“Fiji does not buy crude oil, we buy refined oil which are unleaded, kerosene and diesel,” said Mr Abraham.
“The crude oil prices had collapsed in March 2020 but because we have a bulk procurement of 72 days of supply stock Fijians will not feel the brunt of the change in prices until after at least two months.”
Mr Abraham added that they were working closely with fuel companies to increase their fuel capacity so that Fiji can cater for extra storage.
Meanwhile consumers are to expect more drop in fuel prices for next month.