Relief at the pump as global fuel prices continue to decline.
Fijians may soon see some relief at the pump as global fuel prices continue to decline, but the reduction is unlikely to be immediate.
Finance Minister Esrom Immanuel says while international fuel prices have fallen in recent weeks, local consumers will only benefit after the pricing adjustments work their way through Fiji’s fuel pricing mechanism.
Fuel prices in Fiji began increasing earlier this year following heightened tensions in the Middle East and concerns over global oil supply routes, placing additional pressure on households and businesses.
Immanuel says the Fijian Competition and Consumer Commission uses a pricing formula that is based on previous fuel purchase costs, meaning there is usually a delay before global price movements are reflected locally.
“We can monitor the rates globally. We can rightfully say it’s going to increase, it’s going to decrease. But how FCCC does its pricing is normally based on a two-month lag, so normally the last two months.”
The Minister says if fuel companies continue purchasing fuel at lower global rates, local fuel prices are expected to fall in the coming months.
He says consumers could begin seeing the benefits one to two months from now, potentially after the announcement of the national budget.
The comments are likely to provide some encouragement to motorists and businesses who have faced a series of fuel price increases in recent months.
