Fuel prices rise and increased costs of doing business in Fiji

Fuel prices rise again from today, Monday, 18 May 2009.

The increases are a result of increases in the international product price of fuel and also the recent devaluation of the Fiji dollar.

Prices outside Viti Levu will vary depending on cartage and freight charges to individual islands.

The increase in product prices brought about by the recent devaluation of the Fiji dollar will contribute to increased costs of doing business in Fiji which may also see an increased in business failures as costs spiral out of control for businesses.

So far Government has not announced any special concessions or benefits that can be tapped by small or micro business enterprises during these hard times.

It is expected that reduction in interest rates as intended by the Reserve Bank of Fiji's recent monetary policy announcements will benefit this sector.

Last weekend, ANZ has announced a reduction in its variable lending rates by 0.5% effective from 1 June 2009. The regulator hopes that all other banks will follow suit and announce reductions in their lending rates.

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