Big drops in fuel prices

Fuel prices will drop this month says the consumer watchdog and price regulator.

“Based on the Import Parity Prices (IPP) the prices of petrol, diesel and kerosene have all decreased for this month,” said Paulus Ain, Independent Consumer and Competition Commission Commissioner.

But the price drop will vary from Port Moresby to other provincial centres due to the cost of transportation of the petroleum product to the fuel stations.   

“As a result of adding all the various cost components, the following table shows the maximum retail prices of fuel that are to be sold in Port Moresby effective from tomorrow (September 8)).”

  • Petrol price will fall by 19.42 toea per litre;

  • Diesel price will decrease by 14.26 toea per litre; and

  • Kerosene price will reduce by 15.84 toea per litre.

“Retail prices at all other designated centres will change according to their applicable in-country shipping and road freight rates charged by the oil distributors for the third quarter of 2015. All centres will see a decrease in the prices of petrol, diesel and kerosene,” Mr Ain said in the statement.  

He added that the drop in the prices is because of varying factors.

“The decrease in the price came about given the fall in the prices for middle and light distillates as assessed and reported on the Platts website in Singapore.  The depreciating PNG Kina-US dollar exchange rates, taxation, and the increase in domestic sea freight rates for this quarter have lessened the extent of the pump price for the three regulated petroleum products.” 

“The ICCC has verified the changes in the IPP based submitted by Puma Energy for the month of September 2015.”

“Puma Energy has calculated the IPP based on an interim pricing arrangement as mutually agreed with the Government. Under this interim pricing arrangement as mutually agreed with the Government. Under this interim pricing arrangement, the Mean of Platts Singapore (MOPS) price quoted to Puma Energy by its overseas suppliers is used for calculating the domestic retail prices.”

“International crude oil prices which are the main driving factor of domestic fuel prices fluctuated and then traded on a downward trend between US$49 (K129.66) and US$41 (K108.49) per barrel respectively during the month of August 2015.”

 “As part of the ICCC’s role in enforcement and compliance, officers will conduct inspection at all service stations from 8th September 2015 to ensure the price at which the petroleum products are sold do not exceed the maximum prices approved by the ICCC.”               

Charles Yapumi