ICCC News

The Independent Consumer and Competition Commission (“ICCC”) hereby announces the new retail fuel prices for this month, which will take effect on Saturday, 08th December, 2018 (December).

According to the ICCC’s calculations, retail prices for petrol, diesel and kerosene will all decrease on average throughout PNG as of 08th December. The decrease in the retail prices for the three petroleum products is mainly attributed to the decrease in the Import Parity Prices (IPP) for December. This price decrease in the IPP has mainly been attributed to the decrease in the crude oil prices for November, 2018 (November) as represented by Dated Brent. However, the extent of the price decrease at the IPP level has been lessened by the increase in the international sea freight and the depreciation of the PNG kina against the US dollar during the month of November.

Moreover, the average crude oil price decrease in November was mainly attributed to increased global crude oil supplies from Iran and Saudi Arabia.  Crude oil supplies from Iran has been increasing after the US decided to grant waivers on some of its sanctions previously imposed on Iran.  The granting of these waivers allowed South Korea, Japan, India, China, Turkey, Taiwan, Italy and Greece to continue importing oil from Iran for the next six months. Saudi Arabia had ramped up its oil production after the sanctions were imposed by the US. With more oil still on the market, Saudi Arabia was caught off guard by the lifting of sanctions by the US.

The domestic retail fuel prices for petrol, diesel and kerosene are inclusive of the IPPs, domestic sea and road freight rates for the last quarter of 2018, the 2018 wholesale and retail margins for petrol, diesel and kerosene; including excise duty for petrol and diesel, and the Goods and Services Tax (GST).

PORT MORESBY

As a result of adding all the various cost components mentioned above, the maximum retail prices for fuel in Port Moresby are as follows:

Port Moresby Retail Prices (toea per litre)

 

Petrol (tpl)

Diesel (tpl)

Kerosene (tpl)

Retail Prices as of 8th December, 2018

      339.24

      331.58

305.92

Retail Prices as of 8th November, 2018

 383.43

364.74

334.19

Price Variance (+/-) toea per litre

-44.18

-33.16

-28.27

Retail prices in all other designated centres will change according to their approved in-country shipping and road freight rates (for the last quarter of 2018) that are charged by the fuel wholesalers.

 

ALL CENTRES

For all centers, the maximum retail fuel prices for each petroleum product in the country will change on average as follows:

  • Petrol prices will decrease by 44.19 toea per litre;
  • Diesel prices will decrease by 33.16 toea per litre; and
  • Kerosene prices will decrease by 28.27 toea per litre.

As part of the ICCC’s enforcement and compliance of fuel prices, its Investigation Officers will conduct inspections at all service stations to ensure prices of petroleum products do not exceed the allowable maximum prices. The following ICCC officers will conduct compliance inspections in Lae, Goroka, Kokopo and Port Moresby. Inspections in other provinces will be supported by our contacts in those provinces. Please note:

  • Mr. Christopher Gabesoa, Mr. Seri Tau Vali, Mr. Dennis Jerry and Mr. Bill Boiu will conduct compliance inspections to all service stations in the National Capital District. They can be reached on telephone number 325 2144;
  • Ms. Pamela Ipambonj and Mr. Timothy Ponau will conduct compliance inspections in Lae. They can be reached on telephone number 472 2859;
  • Mr. Bobby Tei, Roman Rosting and Mrs. Dorcas Baining Julai will conduct compliance inspections in Kokopo, Rabaul, Kerevat, Warangoi and Toma. They can be reached on telephone number 982 9711; and
  • Mr. Kevin Kondo and Mr. Jeffery Khar will conduct compliance inspections in Goroka, Kainantu, Kundiawa and Mt. Hagen. They can be reached on telephone number 532 1077.

The prices set by the ICCC are the indicative maximum retail prices, for which retailers may choose to sell below the maximum price. The ICCC would like to remind retailers who sell fuel-using pumps to set fuel prices to one decimal place while the ICCC will continue to set the maximum price to 2 decimal places.

No fuel pump operator should charge above the Indicative Retail Price for this month’s price regardless of the number of decimals. This is to ensure compliance with the Prices Regulation Act under which the maximum prices of refined petroleum products are set. Retailers who are displaying prices to 1 decimal place are urged by the ICCC to round the prices down to ensure prices are within the allowable indicative retail prices. The ICCC Inspectors will continue to conduct spot checks after 08th December, 2018, to ensure on-going compliance by fuel operators.

Consumers are advised to report any instances of overcharging by retailers through the ICCC’s Consumer Protection Division on 325 2144, on toll free number: 180 3333 or by contacting our Regional Offices closest to you on the numbers provided above.

The Independent Consumer & Competition Commission (Commission) formally informs all stakeholders and the general public of the release of the Draft Report for the Sugar Industry Pricing Review undertaken by the Commission. The Draft Report contains the Commission’s key findings and draft determinations.

The existing pricing arrangement for the sugar products expires on 31st December, 2018. Thus, the Commission undertook the Sugar Industry Pricing Review to make a decision on whether it should continue with the current price monitoring arrangement, vary or cease regulation. Based on its assessment and review of the market and the industry, the Commission has made a draft determination that it would continue with the price monitoring but with changes made to the existing arrangement. This is to ensure monitoring of sugar prices and products is effectively undertaken by the Commission on behalf of consumers.

The review process followed by the Commission to facilitate public comment through a wider Public consultancy process is set out below.

Stage

Action

Date

1

Issuance of public notice on the Review’s Issues Paper

27th June, 2018

2

Close of comments and submissions to the Public Notice

27th July, 2018

3

Release of the Draft Report

05th December, 2018

4

Close of comments and submissions to the Draft Report

09th January, 2019

5

Release of the Final Report (including Final Pricing Order)

31st January, 2019

 

The Commission takes this opportunity to thank every industry stakeholder, key Government Departments and interested parties who have assisted the Commission in providing data and who have so far provided comments and submissions on the Public Notice. The submissions and comments have greatly assisted the Commission to form its Draft Determinations.

The Commission again invites all stakeholders and the general public to provide submissions and comments on the Draft Report. Based on comments and submissions received, the Commission will make its final determinations and release a Final Report on 31st January, 2019.

Hard Copies of the Draft Report can be obtained at the reception counter of the Commission’s office at 1st floor Garden City Complex, Boroko or from the Commission’s regional offices in Goroka, Lae and Kokopo. Soft copies can also be accessed from the ICCC website, www.iccc.gov.pg.

The Independent Consumer and Competition Commission (ICCC) would like to advise the industry stakeholders and general public that it has issued an electricity generation licence to Markham Valley Biomass Limited (MVBL) to generate and supply power.

The Generation licence is issued to MVBL following its compliance of all the licensing requirements under the Electricity Industry Act (EIA) and other industry legislations and regulations.

MVBL is a subsidiary of Oil Search Limited and has a Power Purchase Agreement (PPA) with PNG Power Limited (PNG Power) to generate 15 megawatts of power from biomass in Markham Valley, Morobe Province and supply to PNG Power through its Ramu Grid.

ICCC Commissioner and Chief Executive Officer, Paulus Ain said that MVBL submitted its licence application to the ICCC on 17th July 2017 for review and approval.

“The licence application was submitted after its PPA (including power purchase price) with PNG Power was reviewed and approved by the ICCC.”

“As a requirement under the Electricity Industry Policy (EIP), a copy of the MVBL’s application was forwarded to the Electricity Management Committee (EMC) to review the technical aspect of the application concurrently with ICCC’s internal assessment.

“On the 22nd of August, 2018, the EMC provided its assessment and recommendation to the ICCC.”

Commissioner Ain said that after having assessed the MVBL’s application to be consistent with section 24E and 24F of the EIA and taking into consideration EMC’s recommendation, the ICCC considers MVBL to be a suitable entity to hold a generation licence.

The approval of MBVL’s generation licence, brings the total number of electricity undertakers operating in the generation segment of the electricity industry to nine.

PNG Electricity Supply Industry is separated into four segments: generation, transmission, distribution and retail with licences issued for each segment. The following are current licence holders with their various licences;

  • PNG Power Limited- Generation, Transmission, Distribution and Retail
  • Lihir Gold Limited-Generation, Distribution and Retail
  • PNG Forest Products- Generation, Transmission, Distribution and Retail
  • Ok Tedi Mining Limited- Generation, Transmission, Distribution and Retail
  • New Britain Palm Oil Limited- Generation
  • Posco Daewoo PNG Limited -Generation
  • Daewoo Power PNG Limited -Generation
  • Exxon Mobil PNG Limited -Generation

Some of these licence holders operate in off-gird isolated centers producing power for their core business operations and supply access power to nearby communities and business, while others are mostly Independent Power Producers (IPPs) who generate and supply their excess or wholesale power to PNG Power under a PPA.

The generation segment of the electricity industry is now open to competition as facilitated through the Third Party Access (TPA) Code managed by the ICCC. TPA Code facilitates third party access arrangement between network owner such as PNG Power and IPPs by setting out access rules and guidelines including the pricing mechanisms.    

Commissioner Ain added that since the establishment of TPA Code by the ICCC in 2014, there has been a growing interest from industry players to participate in the large load market (greater than 10 megawatts) of the generation segment. 

“Electricity undertakers who wish to participate in the PNG Electricity Supply Industry are advised to submit their licence applications to the ICCC in a form approved by the ICCC.”

The licence application form can be obtained on the ICCC website: This email address is being protected from spambots. You need JavaScript enabled to view it.. The application processing fee is K1, 000.00. ICCC has established electricity undertaker’s licence application procedures which interested participants are required to comply with.

The Independent Consumer and Competition Commission (“ICCC”) hereby announces the new retail fuel prices for the month of November. These prices will come into effect on Thursday, 08th November, 2018.

According to the ICCC’s calculations, retail fuel prices for petrol will decrease while the retail prices for diesel and kerosene will increase throughout PNG as of 08th November.

The decrease in the retail price for petrol is attributed to the decrease in the Singapore prices for petrol in the previous month, while the increase in the retail prices for diesel and kerosene is also attributed to the increase in their Singapore prices in the previous month.

Fuel prices will continue to be influenced by factors beyond the control of ICCC. The recent price increases are primarily driven by the world market price for crude oil, the depreciation of the kina against the US dollar and international freight rates. Future price movements will also be influenced by geo-politics in the Middle East especially between Saudi Arabia and Iran. The reintroduced sanctions by the United States of America (USA) on Iran will cut off a significant amount of supply of crude oil from the world market. This has the potential to drive up crude oil prices even further and subsequently increase fuel prices even further.

The domestic retail fuel prices for petrol, diesel and kerosene are inclusive of the Import Parity Prices (IPPs), domestic sea and road freight rates for the last quarter of 2018, the 2018 wholesale and retail margins for petrol, diesel and kerosene; including excise duty for petrol and diesel, and the Goods and Services Tax (GST).

 

PORT MORESBY

As a result of adding all the various cost components mentioned above, the maximum retail prices for fuel in Port Moresby are as follows:

Port Moresby Retail Prices (toea per litre)

 

Petrol (tpl)

Diesel (tpl)

Kerosene (tpl)

Retail Prices as of 8th November, 2018

      383.43

      364.74

334.19

Retail Prices as of 8th October, 2018

 385.97

355.37

323.85

Price Variance (+/-) toea per litre

-2.54

+9.37

+10.34

 

Retail prices in all other designated centres will change according to their approved in-country shipping and road freight rates (for the last quarter of 2018) as charged by respective fuel wholesalers.

 

ALL CENTRES

For all centers, the maximum retail fuel prices for each petroleum product in the country will change on average as follows:

  • Petrol prices will decrease by 2.54 toea per litre;
  • Diesel prices will increase by 9.37 toea per litre; and
  • Kerosene prices will increase by 10.34 toea per litre.

As part of the ICCC’s enforcement and compliance of fuel prices, its Investigation Officers will conduct inspections at all service stations to ensure prices of petroleum products do not exceed the allowable maximum prices. The following ICCC officers will conduct compliance inspections in Lae, Goroka, Kokopo and Port Moresby. Inspections in other provinces will be supported by our contacts in those provinces. Please note:

  • Mr. Christopher Gabesoa, Mr. Seri Tau Vali, Mr. Dennis Jerry and Mr. Bill Boiu will conduct compliance inspections to all service stations in the National Capital District. They can be reached on telephone number 325 2144;
  • Ms. Pamela Ipambonj and Mr. Timothy Ponau will conduct compliance inspections in Lae. They can be reached on telephone number 472 2859;
  • Mr. Bobby Tei, Roman Rosting and Mrs. Dorcas Baining Julai will conduct compliance inspections in Kokopo, Rabaul, Kerevat, Warangoi and Toma. They can be reached on telephone number 982 9711; and
  • Mr. Kevin Kondo and Mr. Jeffery Khar will conduct compliance inspections in Goroka, Kainantu, Kundiawa and Mt. Hagen. They can be reached on telephone number 532 1077.

The prices set by the ICCC are the indicative maximum retail prices, for which retailers may choose to sell below the maximum price. The ICCC would like to remind retailers who use fuel pumps to sell fuel to set fuel prices to one decimal place while the ICCC will continue to set the maximum price to 2 decimal places.

No fuel pump operator should charge above the Indicative Retail Price for this month’s price regardless of the number of decimals that may require rounding-off. This is to ensure compliance with the Prices Regulation Act under which the maximum prices of refined petroleum products are set. Retailers who are displaying prices to 1 decimal place are urged by the ICCC to round the prices down to ensure prices are within the allowable indicative retail prices. The ICCC Inspectors will continue to conduct spot checks after 08th November, 2018, to ensure on-going compliance by fuel operators. Non-complying operators will be prosecuted.

Consumers are advised to report any instances of overcharging by retailers through the ICCC’s Consumer Protection Division on 325 2144, on toll free number: 180 3333 or by contacting our Regional Offices closest to you on the numbers provided above.

The Independent Consumer and Competition Commission (ICCC) is warning all Public Motor Vehicle (PMV) operators in the National Capital District (NCD) not to charge passengers above the current ICCC approved  PMV fares for urban and non-urban routes in 2018 . A number of complaints received and recorded at the ICCC office relate to PMVs charging above the ICCC approved fare of K0.90 for all routes in NCD. The reason for the overcharging is a result of the current road construction in various parts of the city causing traffic congestion.

ICCC Commissioner and CEO, Paulus Ain said PMV operators are reminded to refrain or immediately cease this conduct/practice or will be prosecuted under the Prices Regulations Act (PR Act) and the Independent Consumer and Competition Commission Act 2002 (ICCC Act).

“The ICCC will continue to monitor through its complaints help desk  those PMVs that are overcharging commuters during short trips on a route, particularly for routes 9 and 11 travelling from 4 mile to Waigani and Gerehu.”

Commissioner Ain also encouraged passengers to assist the ICCC by providing the following details to the ICCC office:

  • Plate number of the bus;
  • The particular route the offence occurred;
  • The time of the day and the date the offence occurred;
  • The name of the owner of the bus (written on the driver’s door);
  •  Any distinguishing descriptions of the bus; and
  • Complainant’s name and contact details.

The above details can be provided by contacting the ICCC by telephone on 325 4615  or 325 2144 , or by walking in at the ICCC Head office located on the 1st  Floor, Garden City  Building, Boroko. Alternatively you can visit our website: www.iccc.gov.pg or ICCC Facebook page and twitter iccc.com.

Commissioner Ain said that the ICCC has prosecuted offending PMVs in the past and will not hesitate to do so if this trend continues in the coming weeks.

“The ICCC is also calling on the NCD National PMV Association to inform the PMV owners and operators to be considerate and respect the law. Charging of PMV fares above the approved maximum fare is an offence under the PR Act.”

The penalties under the PR Act range from:

  • a fine not exceeding K600 or imprisonment of up to 6 months, if prosecuted at the District Court; and
  • a fine not exceeding K3,000 or imprisonment of up to 2 years; if referred to a higher Court.

PMV owners are urged to immediately cease charging above the ICCC approved rates.