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Khaiyum’s pals at Tappoos get second fuel margin windfall in less than a month; Economists left scratching their heads as diesel margin powers through 4 percent for the first time under regime

14/1/2015

6 Comments

 
Fijileaks’ investigation of the questionable relationship between the country’s biggest fuel distributor, the Tappoo Group, and Aiyaz Khaiyum, the minister whose career Tappoos saved, was only published on Saturday. Incredibly it took just three days for the government’s own actions to underline our staggering conclusions as the Commerce Commission issued a new set of price control orders that raise the average margins yet again, even though prices at the pump are falling.

A new petroleum price order from the Commerce Commission, effective from this Thursday, has lifted the margin percentage on diesel to over 4 percent for the first time under this or the previous Bainimarama regime  – a rise of more than a quarter percent. Although the margin on unleaded has reduced slightly from 3.99 percent before Christmas to 3.92 under the new pricing, the average of the two margins is now 3.97.

http://www.commcomm.gov.fj/wp-content/uploads/2015/01/LN-Price-Control-Fuel.pdf


Twenty-seven days ago (when the December 20 order came into effect) the average margin was 3.88. It’s clear that the price at the pump needs to reflect the continued fall in global fuel prices (and any effect currency swings may have) so Fijileaks has no argument with the Commerce Commission moving quicky to issue a new set of orders.

But there is no economic rationale why the Commerce Commission have felt the need to raise margins again – just over three weeks after readjusting them upwards. There is also no economic rationale that explains their consistently raising fuel margins whether global oil prices were rising or falling over the past 18 months, when they spent the previous six and a half years keeping the mandate dprofit margin as low as possible.

The only rationale is the grubby politics of Khaiyum paying back Tappoos.

That Khaiyum is the apparent minister for everything in the Bainimarama government is thanks in large part to the Tappoo Group’s career-saving intervention in 2009, which saw the controversial Sigatoka conglomerate buy his $400,000-rated Berry Road property for more than $800,000 through a Tappoo investment vehicle. This saved Khaiyum losing the property as a mortagee default, which would have had consequences for his legal licence and his political career.

Which is why whis week’s generous January 2015 fuel price regime is a millions miles away from the pricing regime that Aiyaz Khaiyum was the minister in charge of before Tappoos took over the 16 fuel stations previously run by Carpenters. In July 2013 – the unleaded and diesel margins were 2.48 percent and 2.52 respectively, or an average of 2.5 percent. Less than a month after the September 2013 takeover by Tappoos, Khaiyum’s Commerce Commission issued a fresh set of petroleum orders that jumped the margins up to an average of 2.9 percent (3.09 and 2.71 for unleaded and diesel respectively).

And so it continues to this day.
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6 Comments
Pandey
14/1/2015 04:16:25 pm

Welcome to chor mandali party government. Fiji people mouth is shut as full of goodies. Karma will catch one day on all Fijian's supporting coup

Reply
Barka Chor
14/1/2015 06:37:37 pm

Greed and abuse of power will catch up on them,Air New Guini announced drop in fuel this bunch of crooks did the opposite, the new ceo for commerce commission is a yes man controlled by this jhut lawyer

Reply
Nothing New
14/1/2015 06:56:56 pm

Shades of Ratu Mara and the Duty Free franchise at Nadi Airport for Motibhai !!!

Scratch my arse and I'll scratch yours !!

Reply
Pandey
14/1/2015 07:55:33 pm

Fijian's real problem people are so called educated bunch of filthy people. Some are Accountants, lawyers, businessman & women, bank managers, Bank MDs, teachers etc.they for personal wealth gain influenced other people that baini is great. Now the result is that he is one of most corrupt person on the earth.

Reply
osea malamalanitabua link
15/1/2015 01:28:02 am

It is our own fault that we allow these goons since 2006 to run an Illegal Military Rule{Junta} and drove us to Bankruptcy.We sat back and never ever take SAK/Bainimarama to task and when the lies pile up we remain silent and be kicked in the teeth.Over the years we drank Kava with drunkardness we the Taukei gave all we had to the Vulagi to sell our Inheritance[Vanua].Sa rui levu na noda sese kei na vakawelewele eda veivutuni sa bera o Bainimarama sa volitaki Viti ki Jaina kei IdiaOur only hope is Impeachment!!Do we have the courage to act faithfully inorder to save our children from carrying the millstone around their necks...the Debt for paying the so called Free Education.Atleast Tappoo saved Khaiyum{Sigatoka Connections]from going straight to Gaol.Before it's too late Tauke we need to SAVE OUR BELOVED Fiji

Reply
Osea Lasulasu
20/1/2015 01:54:33 am

" we the Taukei gave all we had to the Vulagi"

What exactly did you give ???

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