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FijiLive - Friday, July 21, 2000

Cost of fuel, tea on the increase

CONSUMERS were yesterday taken by surprise with the announcement of price hike in fuel. This will
be the third increase this year because of increas in import costs, the Prices and Incomes Board said
yesterday.

"This is the last thing we need," a consumer said. "I'm now topping up my tank before tomorrow
(today)," he said. Another said "This means I will have to reduce luxury trips". "If the increase is from
outside the country then it's justifiable. But it can't be denied that any increase at this point in time will
make things more difficult."

The board said the higher costs are due to the dramatic increases in the world price of crude oil. "Recent
reports of production increases by Oil Producing and Exporting Countries (OPEC) have not yet had the
desired effect of reducing world oil prices in any substantial way. Andrew Smith, Shell Fiji Ltd's
general manager said the increase was mainly due to a squeeze on crude oil production from OPEC
coupled with an increase in demand from Asian countries pulling out of recession. "Fiji has faired better
than many countries with fuel pricing in the past 18 months," Mr Smith said.

"For example in the United States of America, gasoline has gone up 38. 4 Fiji cents a litre compared to
the 27. 6 per litre increase in Fiji." The new prices will differ in some areas because of additional cartage
and delivery charges. The board said retail prices per litre for petroleum products charged at service
stations in major trading centres should not exceed the following:

Motor spirit (unleaded), $1. 25 (11c increase);
Gasoil (diesoline), 93c (3c increase);
Pre-mixed outboard fuel, $1. 13 (8c increase);
Solvent gasoline, 86c (12c increase);
Kerosene, 78c (4c increase).

Meanwhile, PIB also declared an increase in the price of tea because of an
increase in landed cost of bulk tea. The new maximum retail prices for Bushells and Punjas Ceylon Tea
are for Suva, Lautoka and all towns and trading centres on the island of Viti Levu. Prices will vary
outside these main centres.

Punjas Ceylon:
100g, 98c (7c increase);
200g, $1. 90 (18c increase);
500g, $4. 69 (54c increase);

Bushells Tea:
100g, $1. 07 (7c increase);
200g, $2. 02 (15c increase);
500g, $4. 95 (42c increase).

PIB also announced the withdrawal of the percentage mark-up system for 17 basic items as directed by the Ministry of Finance. This means prices of these items will be open to mark-up by traders.

Fiji's Daily Post


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