World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

Fiji: Statement On Increase Of Domestic Fuel Price

Statement by the Minister for Finance on increase in the domestic price of fuel

6 August 2008 - Following the announcement made yesterday (Wednesday 6th August 2008) by the Prices and Incomes Board regarding the increase in the domestic price of fuel, the Ministry of Finance, National Planning and the Sugar Industry feels it necessary to assure the Public that while it appears that the price of fuel in Fiji is going up when world prices are decreasing, this comparison is in fact distorted.

Reports that the world price of crude oil is decreasing are correct, however it is important to remember that Fiji imports refined fuel products (unleaded petrol, diesel, kerosene etc.) and not crude oil. As a result of the refining process the world price of these refined products is higher than the world price of crude oil. Domestic prices implemented trail with a 2 month lag or delay, so the price adjustments made for the months of July and August will reflect world prices prevalent in May and June, which were the highest on record.

The large price increase effective from today relates to the fact that two price reviews (July and August) have been implemented at once. The July price increase was absorbed by the oil companies at a loss to them. This had to be passed on to the consumer from August together with the price increase for that month.

If current indications persist as to the downward movement of the world price of crude oil, then it is possible that the domestic price of fuel may fall to some extent by as early as October this year.

In spite of the recent increase in domestic prices, when comparing our fuel price to that of other Pacific Island Countries, Fiji is clearly better off. For example, the current price in Fiji for unleaded petrol is F$2.44 and for diesel is $2.39, while the equivalent prices in Tonga for the same products are F$2.71 and $3.04 respectively.

Government is aware of the hardship that will be experienced throughout the economy due to these increases in price and is currently considering relief measures, which include a possible reduction in fuel duty, to be discussed in the next Cabinet meeting on Tuesday 12 August 2008. Given Government's support package for the bus industry, claims from taxi and minibus operators for fare increases should be seriously considered by the LTA.

Government will continue to attempt to mitigate the negative effects of these rising prices. However, due to Fiji's dependence on imported mineral fuel products we will remain vulnerable to movements in the world market.

Mahendra P. Chaudhry
Minister of Finance, National Planning,Sugar Industry and Public Utilities

ENDS

Latest World News | Top World News | World Digest | Archives | RSS

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO: