The Fijian Competition and Consumer Commission (FCCC) has welcomed reports of a peace agreement between the United States and Iran but warned consumers not to expect immediate reductions in fuel and LPG prices.
FCCC chief executive officer Senikavika Jiuta said the agreement, once formally signed and implemented, could lead to the reopening of the Strait of Hormuz and ease pressure on global energy markets.
However, she cautioned that any benefits would take time to reach Fiji due to the country’s fuel pricing system.
“Fiji’s regulated fuel pricing methodology operates with an approximate two-month lag. The prices reviewed today are based on international fuel procurement costs, freight rates, and other market factors from previous months,” Ms Jiuta said.
She urged consumers and businesses not to make financial decisions based on expectations of immediate price reductions.
According to FCCC, the disruption in the Strait of Hormuz affected more than just oil supplies.
“When the Strait of Hormuz was disrupted, the impact went beyond oil supplies alone. Shipping routes changed, insurance costs increased, freight rates rose, and buyers looked to alternative markets, all of which contributed to higher fuel costs across the global supply chain,” Ms Jiuta said.
She explained that international refineries supplying fuel to markets such as Singapore, Fiji’s benchmark market, continue to hold inventories purchased at higher prices.
“Any improvement in global fuel market conditions will take time to flow through, as the region will first need to restore normal shipping patterns, rebuild market confidence, and reduce the elevated insurance and freight costs that emerged during the recent period of uncertainty,” she said.
FCCC said its pricing methodology helps shield consumers from short-term market volatility and speculation by reflecting actual costs.
During the recent conflict, concerns over the security of shipping routes through the Strait of Hormuz drove up freight charges, insurance premiums and fuel prices globally, affecting importing countries including Fiji.
Ms Jiuta said the Commission’s Fuel Monitoring Taskforce would continue monitoring fuel and LPG traders, as well as the wider market, to ensure recent global events are not used to justify unfair price increases.
“When difficult times arise, we must remember that we are all in the same boat. Most businesses do the right thing, but no one should seek to unfairly profit from uncertainty at the expense of Fijian consumers,” she said.
“FCCC will continue to closely monitor the market. Where price increases cannot be justified by genuine cost movements, we will not hesitate to investigate and take appropriate action.”
Ms Jiuta said the Commission remained committed to protecting consumers while ensuring businesses continue to operate in a fair and competitive environment.
