Diesel, major cost input: ICCC

The price of diesel is a major cost input in the retail price build up as ships and trucks use diesel to deliver these goods to the retail outlets.

Therefore any price change in the retail prices of diesel will affect wholesale and retail prices of these goods based on logistical and operational factors, said Independent Competition and Consumer Commission (ICCC) Commissioner, Paulus Ain.

“This means that any increase/decrease in fuel costs will directly increase or decrease the operational costs of the manufacturing companies and freighters, which means that prices of these goods at the wholesale and retail level will change accordingly,” said Ain.

He stated that the ICCC will monitor the factory gate price of basic consumer goods for ordinary consumers and will closely monitor these goods.

“Whilst the ICCC does not have regulatory oversight on all the goods and services in PNG, it has the responsibility for monitoring the factory gate prices of rice, flour and sugar, in accordance with the Price Regulations Act, as they are considered to be a necessity for ordinary consumers.

“Hence we will be closely monitoring the price trends of these goods and ensure that they are not excessively priced.”

He also said Public Motor Vehicle (PMV) and taxi fares are included and any increase or decrease in fuel prices affect fares for both transport mediums.

Author: 
Cedric Patjole