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”.
