By Delly Bagu – EM TV News, Port Moresby
In an interview with EM TV today, Commissioner of the Independent Consumer and Competition Commission, Dr Billy Manoka, said there are substantial benefits from the slump in oil prices currently being experienced on the global market due to supply and demand.
If the trend continues, ICCC is expected to make another announcement next month of further cuts to fuel prices, which is good news for motorists.
For wholesalers and retailers, Dr Manoka says the benefits are in lower operating costs.
From a Papua New Guinean perspective, vehicle owners will benefit from the lower prices of diesel and petrol.
People living in rural areas will value that kerosene will be sold cheaper, and air travellers may also benefit from lower JetA1 prices, which will translate into slashed airline ticket prices.
For those in wholesale and retail business, Dr Manoka said lower operating costs are imminent.
With regards to the PNG LNG Project, Dr. Manoka says there’s no cause for panic. He believes that the prices are fixed, and that Papua New Guinea will not lose from this slump in oil prices.
With the lower operation costs and the growth of profit, businesses can look at expanding or increasing their manpower and create more employment.
The increase in profits in businesses can also mean more revenue to the government from corporate tax and thus more money for the 2015 budget.
This means a better economic outlook for Papua New Guinea. While this is good news for some, we many see a reduction in exploration activities.
Dr Manoka also said that InterOil might be the most hurt during this time.