ANNOUNCEMENT OF RETAIL FUEL PRICES – AUGUST 2026

The Independent Consumer and Competition Commission (ICCC) informs all consumers, suppliers, and stakeholders in the petroleum industry that the Government’s Fuel Relief Assistance will continue into its 5^th month as per the NEC Decisions No. 125/2026. Hence, it will be reflected again in the Indicative Retail Fuel Prices (IRP) for this month on Saturday, 08^th August 2026, at 12:00AM. This will see the domestic pump prices maintained at March 2026 levels despite the spike in international oil prices.

As per the NEC Decision No. 125/2026, the subsidy program will continue until 31^st December 2026, maintaining the retail pump prices at March 2026 levels. Under the revised arrangement since July 2026, the subsidy will be targeted towards retail customers, drum sales, PNG Power Limited (‘PPL’) and the Aviation Sector. The NEC has further resolved to remove the premiums in the fuel pricing methodology given that the Middle-East tensions have ceased and oil prices have dropped. Hence, there will be NO premiums allowed in the monthly fuel price calculations for July, August and the succeeding months.

The international oil prices spiked again in early July 2026 due to the ongoing geopolitical tensions between US and Iran in the Middle-East, combined with recent bombing in the Strait of Hormuz and the closure of the alternate choke-point of Bab el-Manheb Strait in the Red Sea by Houthi militants. These recent geopolitical developments have consequently increased the domestic fuel prices which is further pressured by the currency-driven inflation and domestic freight rate re-adjustments for the third quarter of 2026.

Under the Fuel Relief Assistance arrangement, fuel importers will continue to source fuel at prevailing international prices, exclusive of any premiums, and sell domestically to the retail service stations and/or their contracted customers at March’s prices while the Government, through the subsidy programme, continues to cover the difference.

The table below shows how this difference, at a “per litre” basis, will offset the change in August 2026, back to March’s level at 0%. It clearly shows the prices the consumers will pay should there be no subsidy vs the prices they pay under the subsidy:

Table 1. August 2026 Prices (With & Without Subsidy), Kina per Litre (Port Moresby)

As per Table 1 above, the Fuel Relief Assistance will subsidize the amount of K1.14, K1.81 and K1.74 per litre for petrol, diesel and kerosene, respectively.

Furthermore, Table 2 below clearly indicates the prices that will apply in Port Moresby effective 08^th August 2026 at 12:00AM, which is maintained at March 2026 levels. Similarly, prices in the other centres will be also maintained at March levels.

Table 2. August 2026 Subsidized Indicative Retail Prices for Port Moresby.

The ICCC urges fuel importers, distributors, wholesalers, and retailers to comply with the price reset as shown above. The ICCC, together with Customs, IRC, BPNG, and Treasury will conduct ongoing compliance and monitoring to ensure that the Fuel Relief Assistance trickles down to the final consumers.

The Fuel Relief Assistance is the Government’s decisive measure to protect PNG’s economy and people from external shocks. This ensures price stability and supply security during this time of global fuel crisis due to the ongoing US/Israel-Iran conflict in the Middle East and the cascading effects.

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