Change affecting fuel stations

By CLARISSA MOI
THE change in retail and wholesale pricing regulatory structure for petroleum products in the country has affected service station dealers, according to Puma Energy PNG Ltd.
Hulala Tokome, the country general manager and director, said the regulatory changes by the Independent Consumer and Competition Commission (ICCC) at the beginning of the year had significantly reduced margins for its dealers operating service stations throughout the country.
It has affected the company.
“With a fixed wholesale and retail price and margin, all of which have been reduced, the entire industry has been affected, while the Covid-19 pandemic has not been helpful at all,” he said.
“We have been working with dealers that have reached out, to help them understand the new pricing structure and find solutions for the long-term health and continuity of their business and our business.
“Most of our service stations dealers have understood the environment that they are operating within and are trying their best to adapt to this changed environment.
“In Port Moresby, two service stations have temporarily closed and we are working with the dealers to help them adjust their business model to the regulatory changes that have been implemented by the ICCC. “One of our roles, apart from working closely with our SME dealers, is talking to the ICCC about the impact the new pricing environment continues to have on our dealers, giving feedback and support so that we are all working together to a common goal to support nation building and harness the talent of PNG citizens.”
Tokome said all Puma service stations – except one – in the country were operated by citizens.
“We have grown our service station network and liquefied natural gas business in partnership with small medium enterprises,” he said.
“Our business model for success has been focused on hiring, contracting, training and supporting local PNG.
“The facts are that today we employ over 500 staff in the refining and downstream business, 95 per cent who are citizens of Papua New Guinea.”