Malum Nalu: Fuel prices rise as world demand increases

PORTMORESBY, Mon Sept 7: INCREASED international demand for refined fuels has forced up retail prices throughout Papua New Guinea.

Gasoline, diesel and kerosene will rise by about 13 percent for September.

InterOil President Bill Jasper said the higher prices reflect the current volatility of the international marketplace.

“In late August crude oil peaked at around $US73 per barrel, the highest it has been all year.

“However, last month domestic pump prices actually fell in the wake of a decline in international demand,” Mr Jasper said.

“Markets are in a state of flux.

“On one hand there is concern about the continued effects of the global financial crisis.

“On the other, there are signs (including the latest OECD forecast) that the worst may be behind us.

“It is this uncertainty that causes such volatility in the international marketplace and such rapid movement in prices.

“Again we see proof that local fuel prices are determined by global forces and perceptions.

Despite this month’s increases, all fuels remain less expensive throughout Papua New Guinea than they were a year ago.

“Gasoline (ULP), diesel and kerosene are all more than 40 percent cheaper than they were at the beginning of October 2008”, Mr Jasper said.

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/Public Affairs (PNG)

InterOil Corporation

Ph: (675) 311 2796

Mobile: (675) 7201 3870 or 7 (675) 684 5168

Malum Nalu