PRESS STATEMENT: RESETTING OF FUEL PRICES – 16th APRIL 2025

ADJUSTED INDICATIVE RETAIL FUEL PRICES – APRIL 2026

The Independent Consumer and Competition Commission (ICCC) is pleased to inform all consumers, suppliers, and stakeholders in the petroleum industry of the Government’s Fuel Relief Assistance, which will be reflected in the Indicative Retail Fuel Prices (IRP) on Thursday, 16^th April 2026, at 12:00AM. This will see the pump prices that took effect earlier on 8^th April 2026 to be reset back to March 2026 levels.

The domestic pump prices for fuel are adjusted on a monthly basis and released on the 8^th day of each month. In setting the domestic pump prices, the ICCC takes into considerations the Mean of Platts Singapore (MOPS), international sea freight rates, benchmarked from Singapore to Port Moresby, and the movements in the PNG Kina-US Dollar exchange rates, among other fixed parameters in the IPP formula. These components make up the landed cost of fuel into PNG, which is the Import Parity Prices (IPP). In addition to the IPP, the ICCC considers other domestic cost factors such as wholesale margin, retail margin, domestic sea and road freight costs, excise duties and the Goods and Services Tax (GST).  

The IPP makes up about 65% of the domestic pump prices, making our domestic prices very sensitive to movements in global oil prices. On the other hand, PNG is undeniably an import-dependent economy which makes it a price taker with no influence over global oil prices.  

With the closure of the Strait of Hormuz in the Middle East (a critical chokepoint of about 80% of oil exports into the Asian market), the international crude oil prices surged to US$110 per barrel[1] at the last trading day of March 2026. Our fuel importers had to spent more to acquire the same amount of fuel they did about two months ago. This situation is worsened by the continuous depreciation of Kina against US Dollar which is the dominant oil-trading currency. This has significantly increased the domestic pump prices on 8^th April 2026. (Pump prices have increased on average across the country by 35.70%, 67.38% and 75.16% for Petrol, Diesel and Kerosene respectively).

In terms of regulation, the ICCC is mandated to promote an efficient environment for business where relevant costs are being passed through transparently and an appropriate margin is being set to compensate the risks and returns the importers are undertaking in their investment. While on the other hand, the ICCC ensures that fuel supply is sustained and remain affordable to the ordinary consumers. However, the significant increases in the fuel prices for April is outside the control of the ICCC or even the Government of Papua New Guinea as it is caused by an external factor, the current war led by US-Israeli against Iran. Fortunately, the Government took quick decisive actions to intervene with a Fuel Relief Package of K1 billion, which will apply for 6 months, subject to further developments in the global markets.   

Under the Fuel Relief Assistance, fuel importers will be able to source fuel at prevailing higher international prices and sell domestically to the retail service stations and/or their contracted customers at March’s prices while the Fuel Relief Package will cover the difference.

This relief package will be parked with the Bank of Papua New Guinea (Bank of PNG) and will be allocated to importers to cover the difference of their actual purchase price from overseas markets and the domestic controlled prices, as and when they source fuel from the international market.

The first K100 million was made available on 14^th April 2026. The relevant agencies, including Department of Treasury (Treasury), Bank of PNG, Department of Finance (Finance), ICCC, Internal Revenue Commission (IRC), PNG Customs Services (Customs), and the Department of National Planning and Monitoring (Planning), Office of the Chief Secretary are working on the fundamentals and the implementation framework for the Government Fuel relief package.

The table below shows how this difference, at a “per litre” basis, will offset the increase in April 2026, back to March’s level at 0%.

Table 2(a). March and April 2026 Prices Increases, Kina per Litre (Port Moresby) 

Table 2(b). Taxes Forgone and Direct Subsidy to Offset 100% of the Increase in April 2026, Kina per Litre (Port Moresby) 

With a fuel relief execution mechanism in place, the fuel importers, including, Puma Energy PNG Limited (Puma), Mobil Oil New Guinea Limited and ExxonMobil (Mobil), Islands Petroleum Limited (IPL), and Ok Tedi Mining Limited (OTML) will submit pro-forma invoices and price differentials to be confirmed by Bank of PNG, Customs, IRC, Treasury, and the ICCC. Once verified, the importer proceeds to the point of import, particularly, Bank of PNG, and presents the verified pro-forma invoice and price differentials, to claim the direct subsidy amount, net of all taxes. This process will directly be managed by an independent accounting and audit firm to ensure transparency and accountability of the process including the funding disbursements.

To ensure supply is promptly secured and the subsidy arrangement is sustainable, the suppliers shall claim direct subsidy to cover the difference in the prevailing IPP and the actual cost of their imports at prevailing international prices.

The ICCC urges fuel importers, distributors, wholesalers, and retailers to comply with the price reset, effective 16th April 2026 at 12:00AM. The ICCC, together with Customs, IRC, BPNG, and Treasury will conduct ongoing compliance and monitoring to ensure that the Relief Assistance trickles down to the final consumers. The ICCC will then conduct inspections and take appropriate enforcement action against any individual or business found to be non-compliant which is in breach of the Prices Regulation Act, Chapter 320 (PR Act).

PMV and Taxi Fares are expected to return to the ICCC-approved rates as published in the National Gazette. This will also include other secondary spill over into the domestic economy where domestic energy is the major cost driver.

The Relief Package is a decisive measure to protect PNG’s economy and people from external shocks. With strong leadership, transparent administration, and upfront funding, the Government is stabilizing fuel prices, securing supply, and reinforcing public confidence in its economic stewardship.

All enquiries should be forwarded to the Prices Regulation Division on telephone 312 4600 or via email; prd@iccc.gov.pg or infor@iccc.gov.pg respectively.