The Consumer Council of Fiji is calling for a review of the current fuel price announcement mechanism to prevent widespread consumer panic, hoarding, and unscrupulous trader behaviour during the ongoing global fuel crisis.
Council’s chief executive officer Seema Shandil said under the current framework, the Fijian Competition and Consumer Commission (FCCC) determined and announced the regulated fuel and LPG prices on the final day of each month, with the new rates taking effect just hours later, on the first day of the following month.
She said a stark example occurred with the recent fuel determination when a significant price increase was announced at 7pm, five hours before taking effect which triggered immediate chaos, including massive queues and panic-buying at service stations, alongside widespread misinformation on social media.
Ms Shandil said the council also received reports of unscrupulous behaviour by certain LPG suppliers who allegedly hoarded gas canisters, falsely claiming to be out of stock to maximise profits once the higher prices kicked in. She said they had also observed traders hoard gas before a planned price adjustment. She proposed that regulators conduct inspections a day before any intended price adjustment, and take stringent action against unscrupulous dealers to ensure there was no hoarding. She added providing consumers and businesses with advanced indicators was now a necessity.
“We are urging the regulator to shift toward a more proactive approach,” Ms Shandil said. “Providing a preliminary indication or forecast earlier in the week regarding the scale of expected changes will allow consumers to plan accordingly, smoothing out demand and eliminating the late-night rush, and announcing the anticipated changes earlier in the day, or even the day before can help ease the pressure at the pump.”
She said if the announcement could not be made beforehand, then morning or daytime announcements should be made, ensuring final price determinations were announced earlier, rather than late in the evening, giving enforcement officers and consumers ample time to prepare.
