BY MATTHEW VARI
Prices of major fuel products in the country have had major decreases from prices determined last month for the fifth consecutive month.
The price of diesel, on the other hand, will now retail well below K3, a first in more than two years since December 2017 at K2.86 per litre, as the country was still recovering from the 2014-2015 commodity prices slump.
Three of the five consecutive month decreases have been attributed to the Coronavirus impact on fuel demand in the Asian region.
The Independent Consumer and Competition Commission released March’s indicative fuel prices on Friday that took effect on Sunday in Port Moresby, saw decreases in major fuel products petrol a 17toea (t) decrease from K3.36 in February to K3.19 per litre this month, diesel 30t decrease from K3.10 to K2.80 per litre, and kerosene a 31t decrease from K2.79 to K2.48 per litre in March.
ICCC stated Import Parity Prices (IPP) for petrol, diesel and kerosene will decrease on average throughout PNG.
“These price decreases are attributed to decrease in crude oil prices by 12.70 per cent during the month of February, 2020.
“This price decrease was caused by the decrease in demand for crude oil as economic activities in China have slowed down over the past three months due to the Coronavirus outbreak.
“The decrease in crude oil prices has also led to a decrease in the Singapore prices for petrol, diesel and kerosene in February, 2020; and A reduction in the international sea freight rate for February, 2020 by 12.10 per cent,” the regulator stated.
According to the ICCC’s calculations, retail prices will decrease right across the country.
Of the five month spree of decreases since November 2019 to March 2020 the price of petrol has dropped from K3.50 to K3.19 (-31t), diesel has dropped from K3.26 to K2.80 (-46t) and kerosene K2.99 to K2.48 (-51t).
All in all, a K100 purchase in November 2019 would have bought 28.5 liters of petrol, compared to now 31 litres, diesel would have bought 30.6 litres to now 35.7 litres, and kerosene bought 33 litres to now 40.6 litres
The lowest price of diesel took during the height of the commodity prices slump; according to ICCC fuel price records indicate K2.18 per litre in September 2015.
