- Written by Joe Barak Joe Barak
Impacts of an increase in fuel price on Papua New Guinea’s economy
Fuel such as diesel, gasoline (petrol), and liquefied natural gas are essential commodity that drives an economy in terms of production and transportation of goods and services. In the transportation industry, “fuel” is regarded as a major player in the supply chain of goods and services. e issue of increased fuel prices in Papua New Guinea (PNG) will certainly have major ripple effects on the country’s economy.
According to Independent Consumer and Competition Commission (ICCC) indicative retail fuel price notice on 8 July 2021, the price of petrol in Port Moresby was 370.30 toea/litre. As of 8 March 2022, the fuel price went up to 449.27 toea/litre, an increase of 78.97 toea/litre or more than 21 percent within eight months. The main cause of the increase in fuel prices is the result of rising crude oil prices. However, there are also other contributing factors, both domestic and international that also contribute to the issue of increasing fuel prices. Some of the factors include the following: