THE Independent Consumer and Competition Commission (ICCC) has announced its new indicative retail fuel prices for the month of February, 2021.
ICCC Commissioner and Chief Executive Officer, Paulus Ain, in a statement said the new prices took effect on Monday February 8, 2021 and will run for the whole month with prices for petrol, diesel and kerosene being increased on average, throughout the country.
He said the price increase were mainly been attributed to the increase in crude oil prices in January, 2021 which the average price increased as a result of demand for heating oil and tighter global supplies by Saudi Arabia.
“Furthermore, news regarding the developments of new Covid-19 vaccines has had a positive impact on commodity prices including oil.”
Mr Ain said the domestic retail fuel prices for this month are inclusive of the Import Parity Prices (IPP), domestic sea and road freight rates for the first quarter of 2021, the annual wholesale and retail margins for 2021, excise duty, and Goods and Services Tax (GST).
He said as a result of adding all the various cost components, the ICCC set the maximum retail prices for fuel in Port Moresby as follows: petrol 17.40 toea per litre, diesel 12:22 toea per litre and 11:52 toea per litre for kerosene.
Commissioner Ain said retail prices in all other designated centres will change according to their approved in-country freight rates and their respective retail margins for 2021.
“For all centers, the maximum retail fuel prices for each petroleum product in the country will change on average.
“Petrol prices will increase by 17.39 toea per litre, diesel prices will increase by 12.20 toea per litre; and Kerosene prices will increase by 11.50 toea per litre for all centres.”
As part of the ICCC’s enforcement and compliance of fuel prices, Mr Ain said its Investigation Officers will conduct inspections to all service stations to ensure prices of petroleum products comply with the allowable maximum prices.
“The ICCC officers will conduct compliance inspections in Lae, Mt Hagen, Kokopo and Port Moresby with inspections in other provinces will be supported by our contacts in those provinces,” Commissioner Ain said.
Mr Ain also added that 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.