Photo credit: Loop PNG - Paulus Ain
According to the Independent Consumer and Competition Commission (ICCC), fuel costs may decline as a result of travel limitations imposed by the Coronavirus (Covid-19).
The Covid-19 epidemic, according to Commissioner and Chief Executive Officer Paulus Ain, might affect travel and hence lower demand for gasoline.
“Fuel is a strategic commodity with its prices greatly influenced by global geopolitical events and sentiments,” he said.
“Fuel prices may decline due to restrictions on travel because of the spread of the Coronavirus’ Delta variant.”
Papua New Guinea was a price taker, according to Ain, since it was a net importer of refined gasoline and crude oil.
“This means, PNG does not decide fuel prices,” he said.
“Domestic prices of fuel in PNG are determined by world oil prices.”
Retail gasoline costs for this month have risen, according to the Independent Consumer and Competition Commission, due to an increase in the imported price of petroleum products. This month's fuel selling price is K3.79, diesel is K3.28, and kerosene is K3.01.
With the rise in gasoline costs, Ain stated that public motor vehicles (PMV) should not raise charges over the ICCC-approved pricing, as this was unlawful.
He said that the ICCC adjusted PMV rates on a yearly basis in response to changes in the general price level (Consumer Price Index) and the cost of gasoline (diesel).
“However, the annual adjustments to PMV fares take into account the previous year’s movements in the general price level and cost of fuel.
“A monthly increase like what we observed last month will not significantly increase PMV fares next year, as monthly increases are averaged out during annual adjustments, which take place at the end of each year,” he said.
Reference: Moi, Clarissa. The National (20 October 2021). “Fuel price likely to drop: Ain”.
