2011 Annual Report - The Commerce Commission

Table: 19 Determinations and Price Control Orders effected-2011 (Cont--)DeterminationsCompletedDate released/Issues Effective DateCurrently all Medicinal items are under percentage control and the following markups apply: Import Percentage – Twelve percent (12%) Wholesale Percentage – Five percent (5%), and Retail Percentage – Twenty percent (20%).Subsequent to the withdrawal of Fiji Pharmaceutical and Biomedical Society [FPBS] from thesupply of essential medicinal items to the private sector through its bulk purchase scheme, theCommission invited submissions from relevant stakeholders. The stakeholders were asked tomake their submissions on strategies that could be implemented to ensure that an effective pricecontrol mechanism could be implemented. The Commission held a stakeholder meeting on 29November 2011 to hear the stakeholder’s views and also agree on a way forward. Submissionshave been received from the some of the stakeholders and the Commission is expected tofinalise the new list in 2012.4.4 Petroleum Products Price ReviewsDuring the year 2011 three reviews were carried out. After consultation between the fuel industry stakeholders, the Commission and the AttorneyGeneral and Minister for Justice, Anti-Corruption, Public Enterprises, Communication, Civil Aviation, Tourism, Industry and Trade, the review of fuelprices in Fiji was shifted from a monthly to a quarterly basis. The price increase in January 2011 was a result of the increase in Value Added Tax from12.5% to 15%. The April 2011 review resulted in an increase in the local price of petroleum products by 13% - 20%. The August 2011 review resulted inan increase in the local price of petroleum products by 1% - 3%, and the October review resulted in a decrease in prices from 1% - 5%.Page216of236