Rising fuel prices to affect economy, consumers: CEO

The National Business
Navin Raju

THE recent increase in fuel prices will have a major impact on the economy and affect consumers says a company executive.
City Pharmacy Limited Group chief executive officer Navin Raju said: “The fuel cost (went up by) around 23 per cent last month and is significantly impacting the cost of supply and logistics in all aspects of our operation.
“Significant increase in fuel prices will have major impact on the economy and businesses will have no option but to pass the cost to the consumers.
“This will have an impact to consumer spending and will be inflationary.”
The group operates a chain of Stop & Shop supermarkets in Port Moresby, Hardware Haus and City Pharmacy outlets around the country.
It has partnered several brands to bring new products and services to PNG.
“In the short term, we are absorbing the increase in cost,” he said.
“However this may not be possible in the long run if the fuel prices remain at current levels or go further up.
“In the long run this may not be sustainable, and we will have to explore options to recover the increase in costs.”
Hikes in fuel prices in recent months have been blamed on increasing oil prices as the Russia-Ukraine war continues.
The PNG business community is concerned that consumers will bear the brunt of these price increases if there is no direct Government intervention.
Micro Small Medium Enterprise (MSME) council president Desmond Yaninen said last week the increase in fuel costs would be devastating for small businesses.
“Petrol users like taxi drivers will suffer the most unless they are able to increase their fares,” he said.
“The cost of diesel, though cheaper than petrol, will still affect public transport vehicles and transport companies.
“Due to unreliable power from PNG Power, many companies who buy diesel to generate their own power will see an increase in costs.
According to the Independent Consumer and Competition Commission:

  • PETROL price will increase by 55.71 toea per litre;
  • DIESEL price will increase by 77.24 toea per litre; and,
  • KEROSENE price will increase by 76.40 toea per litre.