Fuel price drop raises concern

 PRIME Minister Peter O’Neill says the country is concerned about the drop in global fuel price.

He told Parliament on Tuesday in response to questions by Western Governor Ati Wobiro that the Government was concerned that the continuous drop in fuel price would result in a decline in PNG’s oil revenue.

“It is a great concern but one that is beyond the Government’s control,” he said.

He said the price of fuel was dictated by world’s supply and demand and it could not be predicted when it would end.

He said the Government was closely monitoring the price fluctuation.

“We will feel the effects at the end of the year but PNG has a very good buffer and the revenue coming from the LNG is very good,” O’Neill said.

He said the benefits of the fuel price drop on the economy far outweighed the negative effects.

He said the fuel price had impacted positively on consumers who were happy with the decrease in petrol, kerosene and diesel prices.

The Independent Consumer and Competition Commission recently announced a further price drop this month after one last month.