The Independent Consumer & Competition Commission (“ICCC“) wishes to inform industry stakeholders, interested parties, and the general public on the release of the Final Report for the 2024 Petroleum Industry Pricing Review (review).
The ICCC commenced this review on the 16th of February 2024 under the Prices Regulation Act Chapter 320 (PR Act). A Draft Report was released on 19th September 2024, for further consultations and the ICCC received several submissions for the industry. These submissions have enabled the ICCC to determine the key Findings and present the Final Determinations in the Final Report.
The ICCC has concluded that wholesalers continue to have market power in the service station and drum-filling markets, with many parts of the country having only one or two fuel suppliers. Because of this conclusion, the ICCC has decided to continue applying price controls on petrol, diesel, and kerosene sold at the retail service stations, whilst it will only monitor Jet A1 prices and volumes supplied by Puma Energy PNG Refining Limited including all other wholesalers. This regulatory period is from the 1st of January 2025 to the 31st of December 2029.
The wholesale and retail margins including the drum-filling margins will change on 8th January 2025, as shown on the table below:
| Margin | 2025 (tpl) | 2024 (tpl) | Change (tpl) |
| Average of Retail Margins across all centres | 45.73 | 36.74 | +9.00 |
| National Wholesale Margin | 28.60 | 29.66 | -1.06 |
| National Drum-Filling Margin | 10.32 | 9.93 | +0.39 |
The change to the retail margins, as shown here, is taken on average across all centres in the country. Whilst most centres will see some increases in their retail prices, few centres will see a slight decrease.
The wholesale and the drum-filling margins will be adjusted annually based on the movements in the Consumer Price Index (CPI), and a Productivity Offset Factor (X Factor) as specific in the Final Report. Only in 2027, the ICCC will include an Additional Capital Spending Factor (ACS) with the CPI and X Factor in the annual adjustment of the wholesale margin. This will be done during the mid-term capital expenditure review to be conducted in 2027.
The retail margins will also be adjusted annually, however, it will only be based on the movements in the CPI and an Overseas Inflation Adjustment factor (OIAF), without any X Factor adjustment.
The price order containing the approved maximum margins will be disseminated to all stakeholders, interested persons, and the general public as soon as it is published in the National Gazette.
All queries on this matter should be directed by email to Mr Thomas Vue, Manager – Prices, or Mr Howard Dus, Principal Analyst – Services, Prices Regulation Division or Telephone at 312 4600 respectively.