Puma expects fuel price to rise

The National Business

By CLARISSA MOI
PUMA Energy (PNG) Ltd expects fuel prices to continue to increase as demand for ground fuels increase in line with the economic recovery.
Country manager and director Hulala Tokome told The National that this would have an impact locally compared to the last few months and during the Covid-19 period.
“In general, prices are moving up and expected to continue to move up which will have an impact locally compared to the last few months and during the Covid-19 period,” he said.
“With the gradual release of the Covid-19 vaccine globally, governments are rushing to get their population vaccinated to kick-start their economies.
“Brent prices are back in the mid US$50/bbl (K173.32/barrel of oil) range as positive sentiment is that the worst is over and the global economy is on track for a strong recovery.
“Biden winning the US presidency and aggressive monetary policy have pushed the US dollar (USD) lower which in turn makes crude more attractive on a USD basis helping push up Brent prices.
“The cold winter took North Asia by surprise and many end users were caught short on fuels for heating demand causing a surge in prices in the short-term.
“We expect prices to continue their upward trajectory as demand for ground fuels increase in line with economic recovery.”
According to the Independent Consumer and Competition Commission (ICCC), the indicative retail prices for petrol, diesel and kerosene will all increase on average, throughout the country.
This is due to the increase in crude oil prices last month which was mainly attributed to the easing of lockdowns following the second wave of the Covid-19, which led to increased oil demand from Asia.
Furthermore, the price increase was also reflective of the increases in the domestic wholesale and retail margins for fuel products this year.
The ICCC said the domestic retail fuel prices for this month “are inclusive of the import parity prices, domestic sea and road freight rates for the first quarter of 2021, the annual wholesale and retail margins for 2021, excise duty, and goods and services tax”.