ICCC To Remove 10% GST on Fuel Products

by PNG Business News - April 21, 2022

On May 8, 2022, the Independent Consumer and Competition Commission will remove the 10% GST on fuel products from its calculation template.

At a news conference in Port Moresby, ICCC chief commissioner and interim chief executive officer Paulus Ain announced.

He stated that the import duty and excise duty on gasoline, diesel, and ZA1 will be totally eliminated and that the ICCC will guarantee that this is reflected in retail outlet pump prices across the nation.

“On the government’s relief package, the ICCC is willing to assist the government by enforcing some of these decisions in relation to fuel and key household items,” he said.

“Given that fuel is a major cost input with these huge reductions the ICCC expects the business community and public transport (land, sea and air) network to pass these cost savings on to the consumers.”

He stated that the ICCC will monitor compliance and that individuals who do not comply will face penalties under the Price Regulations Act.

The ICCC is presently in contact with the government for prospective budgetary help, according to Mr Ain, in order to carry out this vital task.

Fuel, he added, is a big cost driver since it is a significant input in many supply chains in the country's production and delivery of products and services.

“When fuel prices increase, it often drives up the cost of doing business and subsequently increases the prices of goods and services,” Mr Ain said.

“If fuel prices are decreasing, these will have a chain effect on other items because freight will come down and shelves prices of goods and services will also decrease.”


Reference: Kamus, Maxine. Post-Courier (20 April 2022). “10% GST On Fuel To Be Cut In May”.

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Photo credit: Loop PNG - Paulus Ain According to the Independent Consumer and Competition Commission (ICCC), fuel costs may decline as a result of travel limitations imposed by the Coronavirus (Covid-19). The Covid-19 epidemic, according to Commissioner and Chief Executive Officer Paulus Ain, might affect travel and hence lower demand for gasoline. “Fuel is a strategic commodity with its prices greatly influenced by global geopolitical events and sentiments,” he said. “Fuel prices may decline due to restrictions on travel because of the spread of the Coronavirus’ Delta variant.” Papua New Guinea was a price taker, according to Ain, since it was a net importer of refined gasoline and crude oil. “This means, PNG does not decide fuel prices,” he said. “Domestic prices of fuel in PNG are determined by world oil prices.” Retail gasoline costs for this month have risen, according to the Independent Consumer and Competition Commission, due to an increase in the imported price of petroleum products. This month's fuel selling price is K3.79, diesel is K3.28, and kerosene is K3.01. With the rise in gasoline costs, Ain stated that public motor vehicles (PMV) should not raise charges over the ICCC-approved pricing, as this was unlawful. He said that the ICCC adjusted PMV rates on a yearly basis in response to changes in the general price level (Consumer Price Index) and the cost of gasoline (diesel). “However, the annual adjustments to PMV fares take into account the previous year’s movements in the general price level and cost of fuel. “A monthly increase like what we observed last month will not significantly increase PMV fares next year, as monthly increases are averaged out during annual adjustments, which take place at the end of each year,” he said.   Reference: Moi, Clarissa. The National (20 October 2021). “Fuel price likely to drop: Ain”. 

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