Fuel customers in Port Moresby would have paid more at the pump this month if the Government had not stepped in, says the Independent Consumer and Competition Commission (ICCC).
Current fuel prices in Port Moresby stand at K5.90 per litre for petrol, diesel and kerosene. The ICCC says this price does not mean government support has completely ended.
With many people raising concerns about the sudden increase in fuel prices, the ICCC clarified that the increase is mainly due to the Government gradually reducing the fuel subsidy it has been paying on behalf of consumers.
For the past several months, the Government has been helping consumers by paying part of the cost of fuel. Fuel importers purchased fuel at international market prices, with the Government covering part of the cost, meaning consumers paid less at the pump than the actual cost of fuel.
ICCC stated that as Government support decreases, consumers will gradually pay a larger share of the actual fuel price. This is the main reason why fuel prices in October are higher than those in September.
However, consumers are still benefiting from the Government’s assistance package through remaining support measures and GST exemption on fuel.
According to October figures, diesel receives approximately K1.41 per litre in combined support, petrol receives approximately 68 toea per litre, and kerosene receives approximately K1.03 per litre, all from the K1 billion fuel stabilization package.
Without this support, fuel prices would be even higher.
Going forward, if the direct subsidy is removed, fuel prices will become more closely linked to international fuel prices, meaning future prices may rise or fall depending on global markets.
The ICCC highlighted that the GST exemption on fuel will continue until 31 December 2026, helping to reduce the impact on consumers. Any extension of the GST exemption will be considered in the 2027 National Budget.