The Interim Finance Minister said today's increase in fuel price is out of government's hands and the blame should not be placed on them.
Mahendra Chaudhry has defended the interim government saying that they have nothing to do with the increase in prices saying it is based on a template that decides whether prices should be increased or decreased.
"Technically speaking, I cannot issue a directive. The procedure is: the oil prices are reviewed monthly and based on a template agreed to by both sides and when movements take place and an increase or decrease is warranted – it is implemented. So that is the situation."
However, Chaudhry has reassured the public that the interim government will take into consideration what can be done to soften the impact on consumers.
"Last May government provided a number of relief measures and I’m sure they will be considering whether it can extend their relief measures at its next cabinet meeting. So we’ll have to wait until then."
Consumers Association Wants Answers Publish date/time: 06/08/2008 [07:25]
The Fiji Consumers Association will lead a delegation to the Prices and Incomes Board this morning to seek answers behind the massive increase in fuel prices which have come into effect from this morning.
Association General Secretary Paras Sukul said they could not understand why fuel price reviews for the past two months were withheld, leading to such a huge increase.
Sukul said they are concerned that certain decisions by those in authority could be the reason why the increase this time around is so massive.
The Prices and Incomes Board, while announcing the increase yesterday, stated that Fiji has been somewhat sheltered from the global price increases until now as pricing adjustments have been deferred based on government's decision to cushion the impact of these increases.
It said the oil industry had to forego a price review in the month of July and after careful examination, the Interim Minister for Finance Mahendra Chaudhry has decided to implement prices based on the cumulative increases in the months of July and August.
Consumer Council Wants IG Intervention Publish date/time: 06/08/2008 [07:25]
The Consumer Council of Fiji is calling on the interim government to intervene and provide the much needed relief to consumers after another fuel price increase from today.
Chief Executive Officer Premila Kumar said the interim government should act to reduce the fiscal duty on petroleum products.
Meanwhile, the spokesperson for cane farmers in Rakiraki Sanjeet Maharaj said this fuel hike will have a drastic effect on many farmers.
Biggest Fuel Price Increase From Tomorrow Published 05/08/08
Brace yourself for the biggest fuel price increase which comes into effect from midnight tonight.
The Prices and Incomes Board has announced that effective from midnight tonight the price of motor spirits will increase by 28 cents per liter, from $2.16 to $2.44, while the price of diesel increases by 34 cents per liter from $2.05 to $2.39 a liter.
The price of kerosene increases by 26 cents from $1.77 to $2.03 while pre mix outboard fuel prices increase by 22 cents, from $2.16 to $2.38 per liter.
The PIB has advised that this massive increase in fuel prices is due to the large increase in the international petroleum products, which have flowed through to the pump prices around the world.
The huge increases reflect the price adjustments for May and June 2008.
The PIB said the massive increases are regrettable for all consumers but this is an unavoidable outcome of global market pressures.
Huge Fuel Increase Shocks Bus Operators
The Fiji Bus Operators Association will hold an emergency meeting on Friday to determine how its members can remain in operation after the massive increase in fuel prices announced this afternoon.
Association President Pyara Singh told Fijivillage News that the huge increase has shocked bus operators around the country.
Singh added that under agreement with the interim government, they cannot increase bus fares and they may now have to revisit the MOU to seek further government assistance.
Meanwhile, the Fiji Taxi Union General Secretary Rishi Ram said the situation is now at a crisis point for the taxi industry as without a serious consideration for a taxi fare increase. He is calling on the Interim Prime Minister to intervene.
