11/07/2018 Source: Inependent Consumer & Competition Commision
The Independent Consumer and Competition Commission (“ICCC”) hereby announces the new retail fuel prices for this month, which will take effect on Saturday, 08th December, 2018 (December).
According to the ICCC’s calculations, retail prices for petrol, diesel and kerosene will all decrease on average throughout PNG as of 08th December. The decrease in the retail prices for the three petroleum products is mainly attributed to the decrease in the Import Parity Prices (IPP) for December. This price decrease in the IPP has mainly been attributed to the decrease in the crude oil prices for November, 2018 (November) as represented by Dated Brent. However, the extent of the price decrease at the IPP level has been lessened by the increase in the international sea freight and the depreciation of the PNG kina against the US dollar during the month of November.
Moreover, the average crude oil price decrease in November was mainly attributed to increased global crude oil supplies from Iran and Saudi Arabia. Crude oil supplies from Iran has been increasing after the US decided to grant waivers on some of its sanctions previously imposed on Iran. The granting of these waivers allowed South Korea, Japan, India, China, Turkey, Taiwan, Italy and Greece to continue importing oil from Iran for the next six months. Saudi Arabia had ramped up its oil production after the sanctions were imposed by the US. With more oil still on the market, Saudi Arabia was caught off guard by the lifting of sanctions by the US.
The domestic retail fuel prices for petrol, diesel and kerosene are inclusive of the 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).
As a result of adding all the various cost components mentioned above, the maximum retail prices for fuel in Port Moresby are as follows:
|Port Moresby Retail Prices (toea per litre)|
|Petrol (tpl)||Diesel (tpl)||Kerosene (tpl)|
|Retail Prices as of 8th December, 2018||339.24||331.58||305.92|
|Retail Prices as of 8th November, 2018||383.43||364.74||334.19|
|Price Variance (+/-) toea per litre||-44.18||-33.16|
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) that are charged by the fuel wholesalers.
For all centers, the maximum retail fuel prices for each petroleum product in the country will change on average as follows:
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:
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 sell fuel-using pumps 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. 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 December, 2018, to ensure on-going compliance by fuel operators.