Papua New Guinea
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Fuel price to increase by 10 per cent

The Independent Consumer and Competition Commission (“ICCC”) has announced that Indicative Retail Prices (IRPs) for petrol, diesel and kerosene will all increase on average, throughout PNG as of today.

These retail price increases are mainly attributed to the average increase in international crude oil prices in August 2023.

The average increase in crude oil prices was mainly attributed to reduced oil production by OPEC and its allies, and improved global macroeconomic conditions which has contributed to increase oil demand.

The domestic retail fuel prices (IRPs) for this month are inclusive of the Import Parity prices (IPP) or the imported costs for each petroleum product, domestic sea and road freight rates for the third quarter of 2023, the annual wholesale and retail margins for 2023, and the Goods and Services Tax (GST), including the applicable excise duties, among other parameters.

As a result of adding all the various cost components mentioned above, the maximum retail price movements for petrol, diesel and kerosene in Port Moresby will change as follows:

– Petrol – 456.87 toea per litre
– Diesel – 453.13 toea per litre
– Kerosene – 422.65 toea per litre
Retail prices in all other designated centres will change according to their quarterly approved domestic freight rates, and their respective annual retail margins for 2023.

For all other centres, the maximum retail prices for each regulated petroleum product will change on average as follows:

– Petrol prices will increase by 25.17 toea per litre
– Diesel prices will increase by 44.95 toea per litre; and
– Kerosene prices will increase by 48.77 toea per litre.

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.

Whilst 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.

No fuel pump operator should charge above the Indicative Retail Price for this month’s price regardless of the number of decimal places.

This is to ensure compliance with the Prices Regulation Act under which the maximum prices of declared petroleum products are set.

Retailers who are displaying prices to one decimal place are urged by the ICCC to round the prices down to ensure prices are within the allowable indicative retail prices.

ICCC Inspectors will continue to conduct spot checks after 8th September 2023, to ensure on-going compliance by retail fuel operators.