Monday, September 08, 2008

Fuel prices “the cheapest in months”

Port Moresby: THE retail price of fuel provided from InterOil’s Port Moresby refinery has fallen for the second consecutive month.

The reduction applies to the full range of fuels and includes kerosene, gasoline, diesel, zoom and jet fuel.

InterOil President Bill Jasper described it as “a continuation of last month’s positive and most welcome trend”.

“Kerosene prices are at their lowest level in four months”.

“Diesel hasn’t been this cheap since April and gasoline prices are at their lowest since March”.

“In fact, this is the largest single price drop since late last year”.

He said the recently announced September pump prices reflect the decreased demand for crude oil and refined fuels on the international market.

It also follows an increased output of OPEC nations.

Mr. Jasper described it as “the classic demand and supply equation”.

“The greater the international demand, the higher the price … but when demand eases, prices begin to stabilize and then fall”.

“It is good news but underlines the degree to which domestic fuel prices are the mercy of international forces”.

“Again it is evident that the major factors controlling local prices are external to our (PNG) economy”.

“Neither we, the Government nor the ICCC can control these forces. Often we cannot even predict just how far the pendulum will swing”, Mr. Jasper said.

“However, the current downward trend will be welcomed by governments, businesses and private consumers.”

“After months of pain our customers now have some relief”.

“Among these are the many families that use a range of fuels for both domestic and travel purposes”, he said.

“It is also good news for our business”.

“Lower crude oil prices mean that less of our working capital is tied up in oil shipments and crude stocks in storage facilities”, Mr. Jasper said.

He said that consumers throughout the world were also benefiting for the current lower prices.

“We are part of the international oil-consuming community and whatever happens overseas also effects us here in Papua New Guinea”.

Mr. Jasper said that this month’s price reduction was no guarantee of future trends.

“Domestic fuel prices will continue to be determined by international forces”.

For further in formation and to arrange media interviews contact:

Susuve Laumaea
Senior Manager Media Relations InterOil Corporation
Ph: (675) 321 7040
Mobile: (675) 684 5168

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