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October 09, 2012 12:00:00 AM
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Fiji's Commerce Commission today announced an increase in the price of  flour, kerosene and diesel.

Commission Chairperson, Dr Mahendra Reddy said the reason for the increase in flour prices was due to supply side constraints.

“The main supply side issue is the prolonged drought in USA and Australia which has restricted production and supply of heat and thus created avenue for increase in price,” Dr Reddy said.

The prices began rising since June this year and the price changes at wholesale are as follows:

The price of Bakers flour has increased by 7%, normal flour has increased by 3%, Sharps have increased by 5% and normal wholemeal flour has also increased by 5%.

Meanwhile, a few changes have been noted in petroleum products as there is no change in the price of motor spirit while there is a reduction in the price of premix.

Kerosene and diesel prices on the otherhand have increased.

“The crude oil prices in general started to decline most of the quarter but increased in the last part of the quarter,” Dr Reddy added.

He also said that the weakening of the Fijian dollar has not helped Fiji either.

Kerosene price has increased by 3 cents and diesel has increased by 7cents however premix prices have fallen due to sluggish demand as well as new refinery into the market so the prices have fallen by 4 cents.

The new prices will come into effect this Friday.

By Indrani Krishna

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