There seems to be a glimmer of hope for Fiji‘s drivers, businesses, and households as far as the cost of fuel at the fuel retail outlets in Fiji; however, it remains unclear to what extent fuel prices can be reduced. The timing of this price reduction will remain dependent upon the Fiji Competition and Consumer Commission (FCCC) and the decision that will be made by the FCCC in relation to any price reductions for fuel. The prime minister of Fiji noted that international fuel prices are starting to decline due to fluctuations in global oil prices; however, the supply of fuel in Fiji cannot be reduced because some distributors are still holding onto fuel supplies purchased at higher prices.
At a cabinet meeting that occurred on Monday, the prime minister of Fiji identified that the Government of Fiji has received an update from the National Fuel Controller (NFC) in relation to the fuel supply position from the NFC; the Honourable Ro Filipe Tuisawau, the minister for public works, outlined that the fuel supply position remains stable and there are no indications of any fuel supply disruptions currently in Fiji.
That distinction is important to note. The domestic price at the bowser often trails behind the downward-trending global prices due to local inventories being purchased and shipped around on supply chains that carry earlier and higher costs, even when global fuel prices are going down. For example, in Fiji, the Prime Minister has made clear that the FCCC will decide if the easing of global prices is sufficient for a retail price decrease.
The Cabinet meeting was an extremely short one – fuel supplies were really the only topic of discussion, and there were also two simple submissions to do with fisheries that dealt with industry security and the environment. However, there are many more households monitoring their transportation costs and monthly budgets, and many more businesses paying attention to overheads. Therefore, fuel is very likely to be a primary focus area for attention rather than any of the two fisheries submissions mentioned above.
The government is telling people that things look promising (as opposed to being able to provide immediate relief) – the global price of fuel is softening, supply is plentiful and secure, and the FCCC will determine when and if the change occurs for consumers in Fiji.
