By FRANK ASAELI
THE surge in fuel prices is having an adverse impact on two of Papua New Guinea’s biggest industries – fishing and forestry.
Some tuna fishing boats have abandoned fishing and are currently tied up alongside the Port Moresby harbour in Downtown.
Blaise Paru of Sanko Bussan (PNG) Ltd said high fuel prices had hit them hard, and questioned why PNG was producing crude oil that should be processed at Napanapa.
“If fuel is processed locally, then why should it be expensive?” he questioned.
Bob Tate of PNG Forest Industry Association had earlier said logging companies burned a lot of fuel and they were already having a difficult time.
He said this before the latest price hike.
Mr Paru said unless there was immediate Government acceptance and intervention in some control in fuel prices, everyone was at the mercy of fuel companies.
Commissioner and CEO of the Independent Consumer and Competition Commission (ICCC) Thomas Abe said under the project agreement, InterOil had committed itself to apply the prices as determined by the formula set out in the agreement that was signed in 1996.
However, Mr Abe said: “InterOil has now moved to set these prices outside of this agreement.”
Despite this, ICCC announced the revised prices for fuel reflecting the Government’s decision to allow change in the pricing formula for a period of three months during which time an independent expert will review the legitimacy of InterOil’s claim that the new formula is the more appropriate way to determine the ex-refinery prices in PNG.
Mr Abe said any decision on the continuation or alteration of this agreement was a matter for the Government in consultation with InterOil.