Good news as fuel and gas prices drop from Thursday

There is some good news as fuel and gas prices will drop from this Thursday.

The cost of one litre of unleaded fuel will drop by 55 cents to $3.12, diesel will go down by 52 cents to $3.09, kerosene will drop by 44 cents to $2.45 while premix will go down to $2.93. The price for kerosene is the VAT exempt price.

A 12 kg cylinder of gas will cost you $43.01 from Thursday, a 4.5kg cylinder will cost you $16.13, 1 kg of bulk gas will cost $3.32 while a litre of Autogas will cost $2.21.

The gas cylinder price is VAT exempt price while bulk price is Wholesale VAT exclusive price and Autogas retail price is VAT inclusive price.

The Fijian Competition and Consumer Commission says the fuel price review in Fiji follows a one-month lag period, as such the September 2022 local fuel prices are based on imports made in July 2022 by fuel companies.

FCCC has used August 2022 Saudi Aramco Butane Contract Price (CP), while international freight rates and foreign exchange rates were based on July 2022 imports to determine LPG prices for September 2022.

The Commission says the fuel price in Fiji is impacted by movement in the Means of Platts Singapore (MOPS), international freight rates and foreign exchange rates.

The major reason for the decrease noted in local prices of fuel products in September 2022 are due to favourable movements noted in the international refined fuel prices, that is price of unleaded, premix, kerosene, and diesel decreased and favourable movement noted in the international freight rates of all refined fuel products, that is international freight rate also decreased based on July 2022 imports.

The decrease in refined fuel products and international freight rates were also supported by weakening of the US dollar against the Fijian dollar.

Crude oil prices declined in July 2022 following two consecutive months of sharp rises.

The drop in crude oil prices in July 2022 was mainly driven by selloffs in future markets amid elevated volatility, which was fuelled by softening global economic and demand outlooks.