The Independent Consumer and Competition Commission (ICCC) has announced the new retail fuel prices for this month, which will be effective as of Sunday, 8th of October 2023.
For this month, the Indicative Retail Prices (IRPs) for petrol, diesel and kerosene will all increase on average, throughout PNG. These retail price increases are mainly attributed to the average increase in international crude oil prices in September 2023. The average increase in crude oil prices was mainly attributed to production cut by OPEC countries, and continuous depreciation of the kina against US dollars.
The domestic retail fuel prices 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 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 all other designated centers will change according to their quarterly approved domestic freight rates for the last quarter of 2023, and their respective annual retail margins for this year.
The maximum retail prices for each regulated petroleum product will change on average as follows:
- Petrol prices will increase by 11.43 toea per litre;
- Diesel prices will increase by 19.02 toea per litre; and
- Kerosene prices will increase by 21.29 toea per litre.
As part of the ICCC’s enforcement and compliance of fuel prices, Investigation Officers and agents will conduct inspections to all service stations to ensure prices of declared petroleum products comply with the allowable maximum prices.
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. 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.
Consumers are advised to report any instances of overcharging by retailers through the ICCC’s Consumer Protection Division on telephone number 312 4600, or by contacting the Regional Offices closest to you on the numbers provided above.
