Price of fuel to increase this month

The Independent Consumer and Competition Commission [ICCC] has announced the new retail fuel prices for this month, which took effect today [Thursday].

For this month [August 2024], the Indicative Retail Prices [IRPs] for petrol, diesel and kerosene will increase on average, throughout PNG.

In Port Moresby the price of petrol has increased by 10.46 toea per liter [tpl] 2.30t rise for diesel and Kerosene swelling by 1.58t.

Retail prices in all other designated centers will change according to their quarterly approved domestic freight rates for the third quarter of 2024, and their respective annual retail margins for this year.

For all other centers, the maximum retail prices for each regulated petroleum product will all change on average as follows: petrol prices will increase by 10.46 tpl; diesel prices will increase by 2.32 tpl; and kerosene prices will increase by 1.58 tpl.

ICCC in media statement outlined that retail price increases were mainly attributed to higher oil demand in the United States and the ongoing geopolitical tensions in the Middle East.

The consumer watchdog indicated that domestic retail fuel prices [IRPs] for this month are inclusive of the Import Parity Prices [IPPs] or the imported costs for each petroleum product, domestic sea and road freight rates for the third quarter of 2024, the annual wholesale and retail margins for 2024, and the Goods and Services Tax [GST], including the applicable excise duties, among other parameters.

As part of the ICCC's enforcement and compliance of fuel prices, investigation officers will conduct inspections to all service stations to ensure prices of declared petroleum products comply with the allowable maximum prices in Lae, Mt. Hagen, Kokopo and Port Moresby.

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 2 decimal places.

Fuel pump operators have been urged not to 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 1 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 August 2024, to ensure ongoing compliance by retail fuel operators.