The Independent Consumer and Competition Commission (ICCC) has announced the new retail fuel prices for this month, which took effect yesterday, Wednesday, 8 May 2024.
For this month (May 2024), the Indicative Retail Prices (IRPs) for petrol, diesel and kerosene will increase on average, throughout Papua New Guinea.
The domestic retail fuel prices (IRPs) for this month are inclusive of the Import Parity Prices (IPPs) or the imported costs for each petroleum product, domestic sea and road freight rates for the first quarter of 2024, the annual wholesale and retail margins for 2024, and the Goods and Services Tax (CIST), including the applicable excise duties, among other parameters.
Because of adding all the various cost components mentioned above, the maximum retail price movements for petrol, diesel and kerosene in Port Moresby is K4.84 from K4.67 in April, K4.45 from K4.39 in April and K4.06 from K4.05 in April respectively.
The retail price increases are mainly attributed to the average increase in international crude oil and refined product prices in April 2024. The increase in prices was due to crude oil supply disruptions caused by escalating geopolitical tensions in the Middle East.
Retail prices in all other designated centers will change according to their quarterly approved domestic freight rates for the first quarter of 2024, and their respective annual retail margins for this year. For all other centers, the maximum retail prices for each regulated petroleum product will all increase on average consistent with the increases observed for Port Moresby.
As part of the ICCC's enforcement and compliance of fuel prices, their Investigation Officers will conduct inspections to all service stations to ensure prices of declared petroleum products comply with the allowable maximum prices.
The prices set by the ICCC are the indicative maximum retail prices, for which retailers may choose to sell below the ICCC approved maximum price.
In a statement, ICCC Commissioner and CEO said, “Whilst retailers may choose to set fuel prices on their pumps to one decimal place, 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 decimal places. This is to ensure compliance with the Prices Regulation Act under which the maximum prices of declared petroleum products are set. Retailers who are displaying prices to one decimal place are urged by the ICCC to round the prices down to ensure prices are within the allowable indicative retail prices.
“ICCC Inspectors will continue to conduct spot checks after 8th May 2024, to ensure on-going compliance by retail fuel operators.
“Consumers are advised to report any instances of overcharging by retailers through the ICCC's Consumer Protection Division on telephone number 312 4600, or by contacting our Regional Offices closest to you on the numbers provided above.”