Petroleum Industry Pricing Review FINAL REPORT

FOREWORD

The Independent Consumer and Competition Commission (“ICCC”) is a statutory body established under the provisions of the Independent Consumer and Competition Commission Act 2002 (“the ICCC Act”). The ICCC is vested with responsibilities under the ICCC Act to 

• promote competition and fair trading,
• regulate prices of certain declared goods and services,
• protect consumer’s interests and undertake other related responsibilities.

Under the Prices Regulation Act (Chapter 320) (“PR Act”), the ICCC amongst others is responsible for the regulation of prices for certain oil based refined petroleum products. These refined petroleum products are Petrol, Diesel, Kerosene and Jet A1. The current regulatory and price setting arrangements for petroleum products commenced on 1st July, 2016, and will expire on 31st December, 2019. In view of the expiration of the previous regulatory period at the end of 2019, the ICCC in accordance with Section 25A (6) of the PR Act and Section 5 of the ICCC Act, is undertaking this review to determine whether or not the previous regulatory and price setting arrangements for the petroleum products should continue, and if so, the appropriate form of regulation to apply in this new regulatory period.

The ICCC has endeavoured to carry out this review in an open and transparent manner. To do this, the ICCC:

• Released a public notice on the 1st April, 2019; announcing the commencement of the Petroleum Industry Pricing Review. The notice outlined the relevant issues for consideration in this review and invited the public to make submissions; Petroleum Industry Pricing Review. The notice outlined the relevant issues for consideration in this review and invited the public to make submissions;
• Requested a specified list of information from all the wholesalers and all the retailers in PNG;
• Has held face to face meet with all the wholesalers and several, retailers and Puma Energy PNG Refining Ltd;
• Has requested numerous other pieces of information from interested stakeholders;
• Published a draft report on 28th October, 2019 and invited further stakeholder to make further
  submissions in response; submissions in response;
• Sending copies of its financial models in the form of excel spreadsheets to key stakeholders;
• Held a public workshop in Port Moresby on 19th November, 2019 for interested stakeholders;
  and
  
• Followed up the workshop with additional meetings with stakeholders as requested.

This Report contains the ICCC’s final determinations. It is based upon its analysis and assessment of the data and submissions received.

Should you wish to get a copy of the report you can send an email to: Mr Isidore Mission : imission@iccc.gov.pg or janderson@iccc.gov.pg