Thursday, August 06, 2009

Fuel prices fall for August

Retail fuel prices have fallen throughout Papua New Guinea for the first time in six months.

Gasoline and kerosene is more than five percent cheaper than it was last month and diesel is down four percent.

InterOil President Bill Jasper said the lower domestic prices reflect an easing in demand internationally.

“Again we see how local fuel prices are determined by the global market,” he said.

“This month there are two main factors at work.

“Firstly there has been an easing of demand in the United States despite it being the holiday driving season which normally sees a sales spike.

“Further, oil production and delivery from the rich Nigerian oil fields in Africa has stabilised during recent weeks”.

International crude oil prices have fluctuated during the month from around $US63 a barrel in the first half of the month to around $US72 of recent days.

“The fluctuations are between ten and fifteen percent over relatively short periods.

“This indicates the international marketplace is in a state of flux as the world begins showing signs that we may be emerging from the global financial crisis”, Mr. Jasper said.

“The price of crude oil and refined fuels has been on a wild rollercoaster ride for the past year.

 “Just 12 months ago crude was selling for almost $US150 a barrel, it then collapsed in line with a slump in international demand.”

The reduction in domestic fuel prices this month comes despite an increase in crude oil prices.

Mr Jasper said that all refined fuels are currently “very affordable” by historic and international standards.

“And that, in these trying economic times, is positive and welcome news”.

 

For further information contact

Susuve Laumaea

Senior Manager Media Relations InterOil Corporation

Ph: (675) 311 2796

Mobile: (675) 7201 3870

Email: slaumaea@digicelpacific.blackberry.com  

 

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