Thursday, January 08, 2009

Fuel prices drop for sixth successive month

The New Year has begun with good news for the nation’s fuel consumers.

Retail prices have continued to fall in the wake of the international economic crisis and are now at their lowest levels in twelve months.

The falls apply across the board to all major fuels, gasoline, diesel, kerosene and aviation fuel.

InterOil President Bill Jasper said it is the sixth successive month that fuel prices have dropped in Papua New Guinea.

“The cost of crude oil has been in freefall since last July, dragging down the retail price of refined product with it”.

“The January fuel prices are evidence of the profound effect that international forces have on our domestic market”.

Mr. Jasper said the current situation follows reduced demand for refined fuels in the United States and Europe.

He said it also reflects fears that the burgeoning economies of China and India are beginning to slow down.

“It is in marked contrast to the first half of 2008 when refined fuel skyrocketed, not only here (in PNG) but also overseas”.

Mr. Jasper warned the current low price of fuel was no guarantee of future trends.

“Crude prices seem to have bottomed out and may rise in the months ahead”.

“Hopefully future increases will be moderate and in line with rises in productivity and incomes”.

Mr. Jasper said tumbling fuel prices had given some relief from the current economic situation.

He said it was “the one bright light in an otherwise gloomy outlook”.

“Lower fuel costs will help both government and industry cope in a tough economic environment”.

“Domestic consumers will also find it easier to manage the family budget”.



For further information and to arrange media interviews contact


Susuve Laumaea

Senior Manager Media Relations InterOil Corporation

Ph: 321 7040

Mobile: 684 5168




1 comment:

  1. Anonymous8:45 PM


    In economic terms, one should not expect the fuel price to decrease to a lower level given the fact that we have the world financial crises now. This is against the standard of economic equations.

    Fuel production involves huge costs, and when demand is high, the price also increases.

    Besides, the fall of fuel price should not be expected to go to negative costs, which means the fuel prices in all pumps are free. Anybody can drive to the nearest fuel pump station and replinish his fuel tank. This is pracically impossible. Now, who is paying for this?

    Ths production of fuel is very expensive these days and the public should be reliably informed as to who is paying for the rest of the costs.

    The fuel price set by mechanisms in PNG should undertstand this because tomorrow all motorists might wake up and see that the fuel price is at the highest price.

    Mathew Yakai