THE Independent Consumer and Competition Commission (ICCC) has released the new retail fuel prices for this month, set to take effect on Wednesday, November 8.
The announcement was made by ICCC Commissioner and Chief Executive Officer, Paulus Ain, during a press conference.
He said for this month, the Indicative Retail Prices (IRPs) for petrol, diesel, and kerosene will all decrease on average throughout PNG.
“These reductions in retail prices are primarily attributed to the average decrease in international crude oil prices during the previous month of October 2023. The fall in crude oil prices is a result of reduced demand from China, where manufacturing activities have slowed down.
“Crude oil is a globally-traded commodity and is currently experiencing volatility due to changes in global demand and supply, as well as geopolitical tensions. Last month, fuel prices saw an increase, but this month’s decreases provide some relief to consumers. However, it’s important to note that fuel prices can be unpredictable and may go up again next month.
“The domestic retail fuel prices (IRPs) for this month take into account various factors, including Import Parity Prices (IPPs), domestic sea and road freight rates for the third quarter of 2023, annual wholesale and retail margins for 2023, and the Goods and Services Tax (GST), including applicable excise duties, among other parameters.”
Ain said in Port Moresby, the maximum retail price movements for petrol, diesel, and kerosene will decrease, providing some cost relief to consumers in the capital.
“Retail prices in all other designated centers will change in accordance with their quarterly approved domestic freight rates for the last quarter of 2023 and their respective annual retail margins for this year. For these centers, the maximum retail prices for each regulated petroleum product will also decrease on average, in line with the trend observed in Port Moresby,” he noted.
“As part of the ICCC’s enforcement and compliance of fuel prices, investigation officers will conduct inspections at service stations to ensure that prices of declared petroleum products comply with the allowable maximum prices. ICCC officers will conduct compliance inspections in Lae, Mt Hagen, Kokopo, and Port Moresby, with support from ICCC Agents and respective Provincial Administrations in other provinces.
“The prices set by the ICCC represent indicative maximum retail prices, and retailers have the option to sell below the ICCC-approved maximum price. While retailers may choose to set fuel prices on their pumps to one decimal place, the ICCC will continue to set the maximum price to two decimal places. Fuel pump operators are urged by the ICCC to round prices down to ensure compliance with the Prices Regulation Act, ensuring that prices remain within the allowable indicative retail prices.
He further noted that ICCC inspectors will continue to conduct spot checks after November 8 to ensure ongoing compliance by retail fuel operators.
Ain urged consumers to report any instances of overcharging by retailers through the ICCC’s Consumer Protection Division.
