The Fijian Competition and Consumer Commission (FCCC) has welcomed reports of a peace agreement between the United States and Iran but is cautioning consumers against expecting immediate reductions in fuel and LPG prices.

FCCC Chief Executive Officer Senikavika Jiuta said while the reported agreement could eventually help stabilise global energy markets and support the reopening of the Strait of Hormuz, any benefits for Fiji would take time to filter through the country’s fuel pricing system.

According to Jiuta, the recent disruption in the Strait affected more than oil supplies, contributing to higher freight charges, increased insurance costs and shifts in global shipping routes, all of which placed upward pressure on fuel prices.

She explained that Fiji’s fuel pricing mechanism operates with an approximate two-month lag, meaning current prices are based on earlier international fuel procurement costs, freight rates and other market factors.

As a result, any sustained decline in global fuel prices would likely only be reflected in future pricing reviews.

Jiuta also noted that refineries supplying fuel to the Singapore market, which serves as Fiji’s pricing benchmark, continue to hold stock purchased when global oil prices were higher.

The FCCC said it will continue monitoring international fuel and LPG markets, including freight, insurance and foreign exchange movements, while ensuring businesses do not use recent global events to impose unjustified price increases.

The Commission’s Fuel Monitoring Taskforce will maintain oversight of fuel and LPG traders, as well as the wider market, to safeguard consumers and promote fair trading practices.

Jiuta said the FCCC remains committed to protecting consumers while supporting a fair and competitive business environment.