fuel

PNG is a price-taker in the market and any changes to the global crude oil price directly affect the prices of fuel in PNG.

ICCC chief executive officer, Paulus Ain in a press conference held today to clear the air amid concerns raised pertaining to the increase of fuel prices in the country.

Mr Ain clarified the processes involved in the trading of fuel globally and how it affects fuel prices back home.

He said the fuel price fluctuates because of the inconsistency of the global crude oil prices.

Minister for Petroleum and Energy Kerenga Kua announced in a recent media conference that the declaration was effective 1^st September, and ends 30^th September, 2023.

Kua said the objective is to achieve long-term measures to ensure a stable, uninterrupted fuel supply in the country.

During a recent press conference in Port Moresby, Minister Kua said consultation work began after the declaration with merging results but more needs to be done.

“We have extensive consultation with stakeholders involved in the supply of fuel and in the support of foreign exchange including the banking industry,” he said.

He said the discussion resulted in short-term outcomes to address the issues and were achieved.

For this month, the Indicative Retail Prices (IRP) for petrol, diesel and kerosene will all increase on average, throughout PNG. These price increases were mainly attributed to the increase in crude oil prices in March 2021 as the global oil market responded to lower crude oil production from the Organization of Petroleum Exporting Countries (OPEC) and partner countries.

For this month, the Indicative Retail Prices for petrol, diesel and kerosene will all increase on average throughout PNG. These price increases were mainly been attributed to the rise in crude oil prices in January 2021.  

The average crude oil price increased as a result of demand for heating oil and tighter global supplies by Saudi Arabia[1]. Furthermore, news regarding the developments of new COVID-19 vaccines has had a positive impact on commodity prices, including oil.

For this month, the Indicative Retail Prices (IRP) for petrol, diesel and kerosene will all increase on average throughout PNG. These increases in the retail prices for petrol, diesel and kerosene have been mainly attributed to the increase in crude oil prices during the month of November 2020.

On the other hand, the increase in oil prices has mainly been attributed to news regarding the development of a potential COVID-19 vaccine which has injected fresh hopes of a gradual recovery in oil consumption.

The Independent Consumer and Competition Commission (ICCC) announced the new retail fuel prices for this month have taken effect on Sunday, 08^th March.                     

Furthermore, these price decreases are attributed to the following:

According to the ICCC’s calculations, retail prices for petrol, diesel and kerosene will all decrease on average throughout PNG as of 08^th June. The decrease in the retail prices is mainly attributed to a decrease in crude oil prices during the month of May and also a decrease in international sea freight rates for these petroleum products for the same month.

The Independent Consumer and Competition Commission said the increase is mainly attributed to the rise in crude oil prices driven by steady demand and tight supplies, the depreciation of the PNG Kina against the US dollar in April, 2019, plus an increase in international sea freight for the petroleum products in the same month.

Expected to be fully functional by January 2019, the power project will use natural gas supplied by the PNG LNG project to feed six high efficiency reciprocating gas engines and generators.

It will produce 58MW base load power to the Port Moresby power grid through a new 66kv power line and substation network.​

In a tour of the power project adjacent to the PNG LNG Plant, operator Niu Power says the project is halfway done.