Wednesday, July 08, 2009

Complex international factors force up July fuel prices

Increased international demand for refined fuels has forced up domestic fuel prices throughout Papua New Guinea.

InterOil President Bill Jasper says the increased demand is being spurred by a number of complex factors.

“Perceptions that Europe and the United States may emerge from recession later this year is a significant factor,” he said.

“So too are the needs of the fuel thirsty Chinese economy, which continues to grow despite the worldwide financial crisis.

“Added to this is the disruption to supply from key African oil fields due to political and civil instability.

“During the past month, crude oil reached a year high price of more than $US73 a barrel.

“Basically overseas markets are driven by perceptions of future demand and supply.

“We are part of the international oil-consuming community and as such we are not immune from the powerful forces at play.”

Locally, refined fuels will cost more this month in line with movements in the international marketplace.

The pump price of gasoline (ULP) is up by about 4 %.

Diesel and kerosene have increased by six and seven percent respectively.

Mr Jasper said despite recent increases, refined fuels are significantly cheaper now than they were at this time last year.

“UPL is about a third cheaper than what it was mid-way through 2008,” he said.

“The current retail price of diesel and kerosene is about half of what it was at the peak.

“Fuels are now more affordable for our many Government, commercial and private customers than they were a year ago.”


For further information 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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