Fiji welcomes U.S-Iran agreement, says lower fuel prices will ease cost pressures

(Pacnews) Fiji has welcomed the agreement reached between the United States and Iran, saying the development is a positive step towards reducing global tensions and will contribute to lower fuel prices.

In a statement, Prime Minister Sitiveni Rabuka said: “Fiji also welcomes the agreement reached between the United States and Iran, which signals a positive step towards de-escalation and dialogue during a period of heightened global uncertainty. At a time when conflict has threatened regional and international stability, efforts that prioritise peace, diplomacy and mutual understanding are to be commended.”

Fiji’s last fuel price increase was on June 1, with the price-setting body, the Fiji Competition and Consumer Commission stating it had taken “deliberate steps to protect vulnerable consumers and those most exposed to these increases. The products that vulnerable households, outer-island communities and maritime users depend on most were cushioned the most.”

At that time it said “Kerosene rises by only 14 cents and premix by 29 cents per litre, while petrol and diesel rise by around 80 cents. FCCC phased the adjustment over successive reviews to avoid a sudden price shock from, moderating over time rather than passing the impact of sharp international fuel cost increases through to consumers and businesses in a single adjustment.”

Rabuka said lower fuel prices would benefit both businesses and households.

“Lower fuel prices will help ease pressures on businesses, reduce operational costs, and provide much needed relief to Fijian families who have been affected by rising living expenses. We remain hopeful that continued stability in global markets will support economic recovery and resilience, particularly for small island developing states that are especially vulnerable to external shocks.”

However the FCCC says prices will not come down immediately because of the two month lag in the fuel pricing methodology.