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Changes in fuel prices will be made on a daily basis if the current trend continues, says the Prices and Incomes Board.
The PIB was reacting to criticisms by the public that fuel prices in the world market are going down while fuel prices in Fiji have hit a record high with diesel prices almost matching the price of motor spirit.
The pricing module chosen by the Prices and Incomes Board, regulators of price in Fiji, does not show the current changes in the world market. The price hike felt in the country now are the changes that have happened a month ago when world prices hit a record high.
PIB assistant secretary Biutiviti Biulailai told FijiLive the delayed changes in price helps absorb the shock that will be felt by consumers if Fiji is to follow in the footsteps of developed countries where prices change on a daily basis.
Biulailai said initially fuel price changes were done quarterly, that is, every three months but with the rate of fluctuation in the world market, the PIB addressed the price changes after a lapse of two months which now has gone down to a month.
"Soon we will be looking at having new fuel prices every fortnight. What people do not realise is that there are many factors in place apart from the price in the world market, freight and exchange rate are also parameters we have to consider."
"In the next two to three years, Fiji will also be changing fuel prices on a daily basis, but what this will do is create hysteria with sharp rises overnight."
The current forecast of crude oil prices show a downward trend for this month meaning that oil prices are slowly easing down. However the effect of this will be shown in the price change either in September or October.
For now the new prices are:
- motor spirit: $2.44 per litre - an increase of 28 cents;
- diesel: $2.39 per litre - increased by 34 cents;
- kerosene: $2.03 per litre - increased by 26 cents; and
- premix outboard fuel: $2.38 per litre - increased by 22 cents.
