The government this morning announced that the increases in fuel prices will come into effect on Monday next week January 10th. Both petrol and diesel will cost $3.02 per litre.
There will also be an increase in the cost of liquefied petroleum gas (LPG) from $5.89 to $6.22 per kg which means that popular household 9kg gas bottle will from next week cost $56.
Jet fuel sold to Air New Zealand and other aircraft will also increase although those increases were not announced in the press release.
Premier of Niue, Hon. Dalton Tagelagi says that regrettably, fuel price increases have become
necessary due to global factors and trends that Niue is not immune to.
“GON has been subsidising the fuel costs for several months now and it is no longer
economically feasible or possible to continue bearing these increases without an adjustment
in retail prices”
Last month Premier Dalton Tagelagi told the News of the Week radio programme that the government had been subsidising the increase in fuel prices for the past six months.
The government press release received this morning explains that “Currently, consumers would pay $20 and get approximately 7.58 litres of petrol or 7.52 litres of diesel. From the 10th January 2022, consumers would expect to pay $20 for approximately 6.62 litres of both petrol and diesel. Everyone on Niue needs to be more conscious of just how much these increases will affect their travel and transport plans”.
“A Product Price Six Month Forecast Report was compiled by a technical energy consultancy firm and submitted by Niue Bulk Fuel for Cabinet’s consideration. The report provides a 6-month forecast for petrol, diesel, jet fuel and Liquified Petroleum Gas (LPG) including factors influencing prices.
The independent expert report complements the increase of fuel retail prices by providing sufficient information for Government to determine a fixed retail price of fuel moving forward.”
The last review and adjustment of the fuel prices on the island was five years ago in 2017.