FIJI GLOBAL NEWS

Beyond the headline

A surprise fuel price increase that took effect on April 1 has sparked public anger, political criticism and fresh scrutiny of the Fijian Competition and Consumer Commission’s (FCCC) pricing methodology after motorists raced to fill up on the eve of the reset. Service stations along the Suva‑Nausori corridor reported long queues on March 31 as drivers tried to beat the hike, and social media was soon full of frustrated posts questioning the timing and size of the adjustment.

The controversy centres on claims the FCCC abandoned its long‑standing one‑month lag method for calculating pump prices in its March review, instead allowing more recent crude rallies to influence petrol prices for April. A political party labelled the decision “a callous betrayal of the ordinary citizen,” while the Asia Pacific Regulatory Centre (APRC) warned the regulator’s decision timetable deprived the government of a “critical window” to coordinate a response to a potential fuel shock.

ANZ’s Sydney‑based international economist Dr Kishti Sen joined the growing chorus of experts calling the reset “confusing,” arguing the April 1 prices should not have factored in March crude oil rallies. In an interview with The Fiji Times, Dr Sen explained the industry logic: refined product benchmarks such as the Mean of Platts Singapore (MOPS) are themselves driven by Brent crude prices from the previous month because refiners buy crude on futures contracts with delivery dates that mean headline prices today reflect forward purchases. Under that structure, he said, costs of refined imports landed in Fiji during March should have been calculated from the average Brent price in February — the essence of the one‑month lag Fiji has used historically.

Dr Sen said the MOPS benchmark, with freight, refiner margins and FJD/USD movements added or subtracted, is the main driver of monthly pump price changes, and that the one‑month lag method has “served Fiji well over time.” He suggested the FCCC’s inclusion of March crude averages in the April reset either relied on incorrect data or represented a break from the regulator’s usual methodology, a step with potentially large downstream effects for consumers and businesses already grappling with cost‑of‑living pressures.

Public reaction has been swift. Beyond queues and social posts, commentators and consumer groups have demanded a clear explanation of the FCCC’s data inputs and timing. The APRC’s critique that the late timing limited government options adds a policy dimension to the debate: if regulators change methodology or timing without notice, the capacity for ministers to deploy targeted interventions or stabilisation measures may be reduced.

The FCCC’s March determination and its rationale have become the focal point of calls for transparency. Stakeholders across the political spectrum, along with independent economists, are urging the commission to publish detailed workings showing which price series it used and why, and to clarify whether the one‑month lag remains official policy. The regulator has yet to publicly release a line‑by‑line explanation addressing these specific criticisms.

The dispute over April’s fuel reset is the latest development in an ongoing conversation about price setting and consumer protection in Fiji. With motorists, businesses and advocacy groups pressing for answers, attention now turns to whether the FCCC will publicly justify the change or revert to its previous approach in the next monthly review. The story is developing and further comment from the FCCC and the government is expected.


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