ICCC announces drop in fuel prices

National, Normal

FUEL prices have generally gone down this month thanks to the global reduction in the import parity price (IPP) of crude oil.
Price watch dog Independent Consumer and Competition Commission (ICCC) has urged all fuel suppliers and retailers not to charge above the allowable retail price.
Petrol is now K3.16/L, down 3t from last month’s K3.19/L; diesel is K2.53/L down 5t from K2.58/L last month; and kerosene is at K2.42 down 8t from K2.50.
ICCC acting chief executive Elastus Geroro, in announcing this month’s prices for the three petroleum products, said on monthly average comparison crude oil prices fell slightly last month by 2.7% compared with 9.3% last December.
The crude price reduction together with other factors caused the product prices ex Singapore caused the change in fuel prices as represented by the Mean of Platts Singapore (MOPS) to fall by
2.7% on average.
The IPP on crude oil offset the weaker PNG kina (PGK) against the US dollar (USD) which caused the fuel price to fall.
“While the kina fell against the USD the slight decrease in crude prices at IPP level has contributed to the eventual decrease on the final retail prices at the domestic front.
“Consequently, the domestic fuel prices will reduce by 1.6% on average in March, and, therefore, consumers are expected to pay less than the prices determined in February,” he said.
Last month’s fuel price experienced a rise from January’s due to weaker PGK against USD.
Mr Geroro also said as part of ICCC’s enforcement and compliance duties, ICCC officers would inspect all service stations, an exercise which was to start last Friday.
He also explained the role of ICCC was to set the wholesale and retail margins on an annual basis while the IPP was set under InterOil project agreement.