The Independent Consumer and Competition Commission (“ICCC”) hereby announces the new retail fuel prices for the month of November. These prices will come into effect on Thursday, 08th November, 2018.
According to the ICCC’s calculations, retail fuel prices for petrol will decrease while the retail prices for diesel and kerosene will increase throughout PNG as of 08th November.
The decrease in the retail price for petrol is attributed to the decrease in the Singapore prices for petrol in the previous month, while the increase in the retail prices for diesel and kerosene is also attributed to the increase in their Singapore prices in the previous month.
Fuel prices will continue to be influenced by factors beyond the control of ICCC. The recent price increases are primarily driven by the world market price for crude oil, the depreciation of the kina against the US dollar and international freight rates. Future price movements will also be influenced by geo-politics in the Middle East especially between Saudi Arabia and Iran. The reintroduced sanctions by the United States of America (USA) on Iran will cut off a significant amount of supply of crude oil from the world market. This has the potential to drive up crude oil prices even further and subsequently increasefuel prices even further.
The domestic retail fuel prices for petrol, diesel and kerosene are inclusive of the Import Parity Prices (IPPs), domestic sea and road freight rates for the last quarter of 2018, the 2018 wholesale and retail margins for petrol, diesel and kerosene; including excise duty for petrol and diesel, and the Goods and Services Tax (GST).
Asa result of adding all the various cost components mentioned above, the maximum retail prices for fuel in Port Moresby are as follows:
Retail prices in all other designated centres will change according to their approved in-country shipping and road freight rates (for the last quarter of 2018) as charged by respective fuel wholesalers.
Forall centers, the maximum retail fuel prices for each petroleum product in the countrywill change on average as follows:
· Petrol prices will decrease by 2.54 toea per litre;
· Diesel prices will increase by 9.37 toea per litre;and
· Kerosene prices will increase by 10.34 toea per litre.
As part of the ICCC’s enforcement and compliance of fuel prices, its Investigation Officers will conduct inspections at all service stations to ensure prices of petroleum products do not exceed the allowable maximum prices. The following ICCC officers will conduct compliance inspections in Lae, Goroka, Kokopo and Port Moresby. Inspections in other provinces will be supported by our contacts in those provinces. Please note:
· Mr. Christopher Gabesoa, Mr. Seri Tau Vali, Mr. Dennis Jerry and Mr. Bill Boiu will conduct compliance inspections to all service stations in the National Capital District. They canbe reached on telephone number 325 2144;
· Ms. Pamela Ipambonj and Mr.Timothy Ponau will conduct compliance inspections in Lae. They can be reached on telephone number 472 2859;
· Mr. Bobby Tei, Roman Rosting and Mrs.Dorcas Baining Julai will conduct compliance inspections in Kokopo, Rabaul,Kerevat, Warangoi and Toma. They can be reached on telephone number 982 9711; and
· Mr. Kevin Kondo and Mr. Jeffery Khar will conduct compliance inspections in Goroka, Kainantu, Kundiawa and Mt. Hagen. They can be reached on telephone number 532 1077.
The prices set by the ICCC are the indicative maximum retail prices, for which retailers may choose to sell below the maximum price. The ICCC would like to remind retailers who use fuel pumps to sell fuel to set fuel prices to one decimal place while the ICCC will continue to set the maximum price to 2 decimal places.
No fuel pump operator should charge above the Indicative Retail Price for this month’s price regardless of the number of decimals that may require rounding-off. This is to ensure compliance with the Prices Regulation Act under which the maximum prices of refined petroleum products are set. Retailers who are displaying prices to 1 decimal place are urged by the ICCC to round the prices down to ensure prices are within the allowable indicative retail prices. The ICCC Inspectors will continue to conduct spot checks after 08th November, 2018, to ensure on-going compliance by fuel operators. Non-complying operators will be prosecuted.